Why Hyperliquid’s $331M OTC deal matters as HYPE struggles to recover
Key Summary
Hyperlabs unstaked 3.75 million HYPE worth $331.4 million and distributed to 5 OTC buyers, with 50% allocated already. This move does not increase supply on the open market, and the restaked tokens further support this observation. However, HYPE is under extreme downside pressure, with a bearish crossover on the Stochastic RSI and a rising DI-. If the market pressure persists, HYPE could revisit $84, with $80 acting as critical support.
Market Analysis
Hyperlabs unstaked 3.75 million HYPE worth $331.4 million and distributed to 5 OTC buyers. This move does not increase supply on the open market, and the restaked tokens further support this observation. However, HYPE is under extreme downside pressure, with a bearish crossover on the Stochastic RSI and a rising DI-. If the market pressure persists, HYPE could revisit $84, with $80 acting as critical support.\ \ \ \
Technical Analysis
The Stochastic RSI formed a bearish crossover and fell to 19 as of writing, hitting deep into the bearish zone. The positive DI+ of the Directional Movement Index fell to 21, while the DI- has been on the rise, reaching 7. These indicators suggest that downside momentum is strong and could continue.\ \ \ \
Market Impact
The Hyperlabs sale did not negatively impact the market, but HYPE is currently under extreme downside pressure. Multicoin deposited another 67.5K HYPE worth $5.92 million into Coinbase Prime, which may signal preparation to sell. However, the Spot Netflow has remained negative over the past month, suggesting that more funds have flowed out of exchanges and reducing the amount of HYPE available on exchanges.