HYPE Token Faces Decline After Record Rally

After a record-breaking rally to $59.39, HYPE has lost steam, sliding down the chart due to profit-taking, whale moves, and a looming token unlock weighing on sentiment.

Summary

• HYPE price is down 27% this week, now trading at $42.46 after peaking at $59.39.
• A looming $11.9 billion token unlock in November has sparked fear of dilution.
• Arthur Hayes reportedly sold $5.1M worth of HYPE, fueling bearish sentiment in the market.
• HYPE is facing pressure from other DEX tokens like Aster, which has surpassed it in daily trading volume.

HYPE’s price action has turned bearish, with the token plunging roughly 27% over the past week and trading around $42.5 at press time. This drop comes just days after achieving a new all-time high of $59.39, marking a significant retreat from earlier bullish momentum.

Profit-Taking, Looming Token Unlock Spark HYPE Sell-Off

The ongoing decline in HYPE’s price is likely fueled by profit-taking efforts among investors locking in gains after the recent rally, especially amid a broader market downturn and rising caution in the sector.

A larger factor is an upcoming $11.9 billion token unlock scheduled for November. This event has raised fears of supply dilution, prompting early whales to trim their holdings and traders to cut exposure.

One significant sell-off came from Arthur Hayes, who had previously predicted a 26x rally for HYPE. Hayes sold around 96,600 tokens, worth around $5 million at the time, creating a wave of selling pressure.

Aster Rivalry Pressures Hyperliquid Price

HYPE is also losing ground to Aster, a new rival in the perpetual DEX space. The competition is pulling attention away from HYPE, weakening its momentum and market position. Aster recently surpassed HYPE in 24-hour trading volume, reaching $21.89 billion, reflecting shifting user and investor interests.

On the technical side, HYPE is now 28% below its all-time high. The MACD line at -1.699 signals rising bearish momentum, while the ADX at 27.50 confirms trend strength. If the downtrend continues, HYPE may retest the $40 support or drop further toward $36. To regain momentum, bulls must reclaim the $46 level.