Viewpoint: Hype Selling Pressure Easing, Bullish Market Sentiment for Future Prospects

Jan 27 – Crypto analyst Ericonomic broke down HYPE’s recent sharp price drop, noting the slide from $45–$50 to ~$20 wasn’t random—it stemmed from three distinct selling pressure sources, all already resolved or nearly exhausted. Most trackers show ~9.9M HYPE tokens unlocking monthly, leading many to assume ~$200M in monthly sell pressure. That assumption is wrong: Unlocking ≠ distribution ≠ selling ≠ open-market selling. On-chain data indicates only 7–10% of initially unlocked HYPE has hit the open market; the rest went to OTC trades and staking. By Q4 2025, HYPE’s derivatives structure was unhealthy, with long positions dominating. Ongoing liquidations wiped out most leveraged long positions; ~$150M in long positions remain, with liquidation levels below $15—but leverage-driven downside pressure has largely dissipated. Sixteen Tornado Cash-linked addresses involved in HYPE funding amassed ~4.4M HYPE tokens at ~$8.8 apiece (worth ~$80M). Starting early January, the group launched a mechanized liquidation play: unlocking ~one wallet daily, aiming to push HYPE below $10 if fully dumped (which hadn’t occurred as of press time). When the cluster dumped on-chain aggressively, market maker Wintermute stepped in for arbitrage, funneling the sell pressure to off-chain buyers. Over the past 30 days, Wintermute executed $70M+ in HYPE arbitrage trades, with buyers including Resolv Labs, Auros Global, and others. Ericonomic’s analysis sparked widespread crypto community debate, boosting confidence in HYPE’s outlook. Per market data, HYPE topped $25.7, up 16.2% over 24 hours.