Hype Token Unlock Sparks Supply Concerns Amid Weaker Demand

The Hyperlabs HYPE token unlock has released 433,025 tokens worth over $23 million back to the company, raising concerns about market supply. The transfer of tokens to various wallets, including Flowdesk and exchanges OKX and Bybit, suggests potential selling pressure on the HYPE token.

The release of tokens adds to the existing supply concerns in a weaker demand period for the HYPE ETF products, which recorded net outflows of $15.16 million in July. The market capitalization of HYPE stands at around $12.2 billion, with a total value locked on Hyperliquid of about $6.27 billion.

The technical outlook for HYPE is bearish, with the token trading near the lower boundary of a symmetrical triangle on the daily chart. An upside breakout could expose resistance levels of $67.65 and $76.88, while a breakdown would place support levels of $44.52 and $35.39 in focus.