The Hyperliquid (HYPE) token saw a notable decline this week, dropping from a recent high of $70 to around $58. Over the past seven days, HYPE has fallen by 15%, including a 7% decrease within the last 24 hours, prompting concerns about growing selling pressure among investors.
Major withdrawals by Multicoin Capital
A sequence of large-scale unstaking transactions by prominent investment firms has contributed to this downturn. Lookonchain, a blockchain analytics provider, reported that Multicoin Capital transferred nearly 400,000 HYPE tokens to Coinbase Prime, along with an additional 212,000 tokens requested for unstaking. In total, Multicoin moved approximately 1.96 million HYPE tokens—valued at about $120 million—across three different wallets after keeping these funds staked for nearly two months.
Multicoin Capital, a venture capital firm specializing in cryptocurrency and blockchain investments, had bought these tokens at around $30 each. Their recent moves came only weeks after the company published a bullish research report predicting a long-term HYPE price target of $319.
Multicoin Capital had initially acquired significant HYPE holdings at about $30 apiece and, should it exit now, could realize total profits of roughly $18.5 million, based on current market rates.
Approximately a month before these withdrawals, Multicoin Capital released a report outlining its positive outlook on HYPE, reinforcing the impact of its recent actions on market sentiment.
Mini dictionary: Multicoin Capital is a crypto-focused venture capital firm. It manages funds and invests in early-stage blockchain projects, with a significant presence in the decentralized finance and web3 sectors.
Selini Capital joins large-scale unstaking
Selini Capital, another significant player in digital asset investments, also removed its stake, pulling out approximately 504,000 HYPE tokens worth around $31 million. Whether these tokens will be sold or simply repositioned remains uncertain, but such moves often indicate a strategic shift or preparation for potential selling.
Combined withdrawals from Multicoin and Selini Capital exceed $150 million in HYPE tokens and have fueled speculation within the wider crypto market about possible further downside.
Transferring recently unstaked tokens to centralized exchanges like Coinbase typically signals the potential for near-term selling, particularly when large investment firms are involved.
Alongside these developments, Coin Bureau, an independent cryptocurrency research resource, noted that Hyperliquid’s open interest set a new 2026 high at $11.5 billion—its highest since last year’s “10/10 crash”—reflecting vigorous derivatives trading activity even as spot prices soften.
Mini dictionary: Selini Capital is a digital assets investment firm that participates in trading, staking, and early-stage funding of blockchain projects, focusing on institutional strategies.
ETF outflows and technical outlook
Institutional sentiment toward HYPE has shifted, as spot HYPE ETFs recorded consistent outflows throughout July. On July 21, net withdrawals amounted to 11,210 tokens, while July 17 registered the highest single-day exit this month with 90,580 tokens redeemed from funds.
| Date | HYPE ETF Net Withdrawal |
|---|---|
| July 17 | 90,580 tokens |
| July 21 | 11,210 tokens |
Technical analysis shows that HYPE has broken below the support range formed by a symmetrical triangle pattern. The Relative Strength Index, now at 40, and a negative Chaikin Money Flow highlight fading bullish momentum and investor caution.
A key support area has formed between $54 and $55. Analysts believe that defending this level could allow prices to rebound toward $63 and potentially challenge resistances up to $70. However, losing this support would expose HYPE to the risk of sliding toward $48.
At present, HYPE is trading around $58, with traders closely observing its performance near the $54–$55 technical threshold in the upcoming sessions.
