Prolonged selling by large institutional investors has driven Hyperliquid’s native token HYPE into an extended correction, pushing its price down by approximately 24% over the past month.
Institutional outflows intensify
Major investment firms have been steadily transferring substantial HYPE holdings to centralized exchanges, contributing to increased market pressure. According to the latest on-chain data, Multicoin Capital moved an additional 137,100 HYPE—valued at about $7.51 million—into Coinbase Prime in the past ten hours. At nearly the same time, Bitwise sent another 22,463 HYPE, equal to roughly $1.23 million, to Coinbase.
Although shifting assets onto exchanges can be a step toward improving liquidity or setting up future distributions, these transfers do not necessarily confirm token sales. Still, institutional investors have consistently reduced their HYPE exposure throughout July. This persistent activity adds to the market’s overhead supply, making it difficult for buyers to spark meaningful rallies even during broader periods of strength.
Throughout July, institutional holders have consistently decreased their exposure, and these transactions are part of a larger trend. Even in times of overall market strength, buyers find it challenging to sustain rallies due to the persistent overhead supply created by such selling.
The compounded effect of ongoing institutional outflows and lackluster accumulation is weighing on sentiment across both the HYPE market and the wider cryptocurrency sector, as participants monitor exchange inflows for signals that selling may ease.
Technical outlook weakens
Technically, HYPE’s situation has deteriorated further. The token recently lost another major support level at its 100-day moving average and now trades near $54. The next substantial long-term support stands at the 200-day moving average, close to $50, with the price also below the 50-day moving average.
Momentum indicators have trended downward, with the Relative Strength Index (RSI) dropping to about 34—its lowest point in several weeks. As a result, HYPE is entering oversold territory, which can sometimes precede a relief bounce but does not guarantee a price bottom, particularly while large holders continue increasing supply on exchanges.
Trading volume has also decreased compared to the intense activity recorded in May and June, highlighting a drop in buyer conviction. Analysts note that falling prices and subdued volume typically reflect softer demand, rather than aggressive accumulation.
Key levels to watch
The price zone between $50 and $52 now forms a critical technical region. Should the selling momentum subside, the rising 200-day moving average may attract new long-term buyers into HYPE. Conversely, a move back above the 50-day moving average, currently near $57, would signal initial bullish recovery and a possible shift in market dynamics.
For now, HYPE’s correction continues to be driven by both sustained institutional distribution and a weakening technical setup. Until exchange inflows decrease or buyers successfully absorb additional supply, further upside attempts are expected to face stiff resistance.
Market participants are keeping a close watch on these key technical levels and behavior among major holders, as any shift in institutional flows could alter momentum.
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