Hype Continues: Hyperliquid Token Slumps 24% Amid Institutional Selling
Hyperliquid's native token HYPE has seen its price drop by about 24% over the last month due to persistent institutional selling and a lack of clear trend in the larger cryptocurrency market. Large investment firms have been transferring tokens onto centralized exchanges, which can indicate an intention to increase liquidity or prepare for distribution.
According to on-chain data, Multicoin Capital deposited an additional 137,100 HYPE, worth approximately $7.51 million, into Coinbase Prime over the previous ten hours. At almost the same time, Bitwise sent Coinbase an additional 22,463 HYPE, valued at around $1.23 million.
The persistent overhead supply created by these selling actions has made it challenging for buyers to sustain rallies in HYPE's price. The token is currently trading close to $54, having lost another significant support level around its 100-day moving average.
Despite being near oversold territory, with an RSI of about 34, the technical picture suggests that a bottom may be closer than expected. However, it's essential to note that oversold conditions do not always indicate the formation of a bottom, especially when large holders continue to add supply to the market.