Hyperliquid (HYPE) Price Falls After $120M Multicoin Unstake—Can Key Support Hold?

Hyperliquid (HYPE) price dropped below $60, reaching $58, slipping nearly 7.31% over the past 24 hours. The decline has pushed HYPE closer to a crucial support zone that has held prices for weeks, putting traders on alert for the next major move. With sentiment turning cautious, investors are now watching whether the latest pullback is a healthy correction or the beginning of a deeper decline.

Multicoin Capital Unstakes $120M Worth of HYPE

On-chain data shows that Multicoin Capital unstaked 1.96 million HYPE, valued at approximately $120 million, across three separate wallets. The tokens had been staked for nearly two months before being withdrawn, making it one of the largest HYPE unstaking events in recent weeks.

The unstaked tokens were distributed across the following wallet addresses:

• 0x57c6d4bd52f592a265f59b595a905b04c848174b
• 0xab319403e72c5e97c65ef70031bab8827efc5297
• 0xd4d56a30a4a745f8ba732e8b453b7066260fbc10

While the transaction does not confirm that Multicoin Capital intends to sell its holdings, unstaking makes the tokens readily transferable, allowing them to be moved to exchanges or reallocated. As a result, large unstaking events are often viewed by market participants as a potential increase in liquid supply, particularly when they coincide with broader market weakness.

The latest development also follows Selini Capital’s recent decision to unstake roughly 504,000 HYPE, worth about $31 million, suggesting that multiple large holders have reduced their staked positions over a relatively short period.

Spot HYPE ETF Outflows Signal Weakening Institutional Demand

Institutional sentiment has also softened in recent weeks, with spot HYPE ETFs recording several sessions of net outflows. According to the latest data, HYPE ETFs saw a net outflow of 11.21K HYPE on July 21, extending a trend of intermittent redemptions observed throughout July.

The largest outflow during the month occurred on July 17, when investors withdrew 90.58K HYPE, while other sessions also recorded notable redemptions. Although the market witnessed a few days of positive inflows, they were largely insufficient to offset the broader selling pressure.

Sustained ETF outflows typically indicate cooling institutional appetite, as more capital exits investment products than enters them. When such demand weakness coincides with large whale unstaking activity, it can amplify concerns over the market’s ability to absorb additional token supply.

Hyperliquid Price Analysis: HYPE Breaks a Crucial Support

The Hyperliquid price was trading within a symmetrical triangle over the past several weeks, forming lower highs and lows. However, the recent pullback dragged the price below the support of the triangle as selling pressure escalates. Despite the recent weakness, HYPE continues to trade above the ascending trendline support near the $54–$55 region. 

A successful defense of this level could encourage buyers to regain control, opening the door for a rebound toward the triangle’s upper resistance around $63, followed by $67 if bullish momentum strengthens.

The RSI has been declining as it slipped to 40, reflecting the weakening of buying momentum. Besides, the CMF has turned extremely negative, indicating that capital has been flowing out of HYPE. The combination of a declining RSI and negative CMF suggests that buyers have yet to regain conviction despite the token approaching a major support zone.

If buyers defend the $54–$55 support region, HYPE’s price could attempt another move toward $63, with a confirmed breakout above the triangle potentially targeting the $67–$70 area. However, a decisive close below support would invalidate the current consolidation structure and expose the token to a deeper correction toward the next major demand zone around $48.

What’s Next for Hyperliquid (HYPE)?

Hyperliquid’s recent price correction is being shaped by a combination of on-chain developments and weakening market sentiment rather than a single catalyst. As large holders reduce their staked positions and ETF flows remain subdued, traders will be closely watching whether buyers can absorb the potential increase in liquid supply. With the price hovering above a critical support zone, the next few trading sessions could determine whether HYPE resumes its broader uptrend or extends its current correction.