HyperLabs unstaked 3.75 million HYPE tokens, valued at $331.4 million, and arranged an over-the-counter deal with an undisclosed institution rather than selling on the open market. Half of the allocation—1.875 million HYPE—has been distributed across five OTC buyer wallets, with each receiving 375,000 tokens.
OTC sales typically have a neutral market impact since they do not increase circulating supply. This impact was reinforced when 1.25 million HYPE tokens worth $110.5 million were restaked, a move that reduces available supply and may signal long-term buyer conviction.
Institutional Activity and Exchange Deposits
Beyond HyperLabs' transaction, other institutions have been active. Multicoin deposited 67.5K HYPE worth $5.92 million into Coinbase Prime, bringing its total monthly deposits to 760.58K HYPE worth $62.99 million. Exchange deposits often precede sales, though spot netflow data has remained negative, suggesting more funds have flowed out of exchanges than in, potentially limiting immediate sell-side pressure.
Price Pressure and Technical Indicators
Despite the structural neutrality of the OTC deal, HYPE has faced significant downside pressure. The token fell from $94, lost the $90 support level, and dropped to a low of $86.60 before rising slightly to $87 at the time of reporting.
Technical indicators reflect strong bearish momentum. The Stochastic RSI formed a bearish crossover and fell to 19, deep into oversold territory. The Directional Movement Index showed the positive DI+ declining to 21 while the negative DI- rose to 7, signaling strengthening downside pressure.
If current market conditions persist, HYPE could revisit $84, with $80 representing critical support. A market reversal could allow the token to reclaim $90.
