The cryptocurrency world is abuzz as Hyperliquid prepares for a massive token unlock worth $316 million, scheduled for November 29th. With the impending release of 10 million HYPE tokens—representing 3.6% of its circulating supply—analysts and investors are divided on the potential impact on HYPE’s price.
What to Expect from the HYPE Unlock Event?
According to Tokenomist data, the token unlock is part of Hyperliquid’s ongoing strategy to support its founders and team. However, this news has left the market in a state of uncertainty. While some large players predict a 10% price dip to $28, others suggest that $30 could act as a consolidation point, paving the way for a potential rebound. Notably, the token is currently trading at $31.4, significantly down from its peak of $59.4.
Why Are Investors Split?
Options market data shows increased volume of put activity at the $28 level, signaling hedging against possible downside risks. At the same time, technical analysis reveals this price level served as a breakout zone earlier this year, which may encourage support from traders expecting a recovery. Additionally, recent blockchain data suggests HYPE has seen accumulation over the last week, with more tokens moving off exchanges. This indicates rising interest in self-custody, typically seen as a bullish sign.
What Are Analysts Saying?
Despite the bearish sentiment surrounding large token unlocks, experts believe the impact of this unlock may be more limited. Teng Yang, a prominent analyst, commented, “The team might sell tokens, but the price drop likely won’t be as severe as feared. OTC or gradual selling could limit immediate downside pressure.”
Arthur Hayes, a notable crypto investor, cautioned that despite an aggressive buyback pace, the recurring monthly unlocks over the next 24 months could lead to a $400 million supply overhang, which could weigh on long-term value.
How to Navigate the Market Volatility?
For retail traders, keeping an eye on key support levels like $28 and monitoring institutional action could provide insights into market direction. Diversifying your portfolio and ensuring you’re prepared for market swings is also vital, as the cryptocurrency space remains volatile.
Recommendation: Stay Informed and Invest Strategically
While the market remains divided, tools like the Ledger Nano X hardware wallet can provide added security for those moving their HYPE into self-custody. Learn more about it here.
Overall, Hyperliquid’s supply strategies and market movements should be carefully monitored by investors, as the outcome of this unlock could set the tone for the token’s performance in the coming months.
