Opinion: HYPE Selling Pressure Is Nearly Exhausted, Market Outlook Remains Positive

BlockBeats News, January 27, crypto analyst Ericonomic published an article analyzing the recent sharp decline in HYPE's price. He stated that the drop from the $45-50 range to around $20 was not accidental, but rather caused by three very specific sources of selling pressure. However, these pressures have either already been resolved or are close to being exhausted.

Most trackers still show that about 9.9 million HYPE tokens are being released each month, leading many users to believe there is about $200 million in monthly selling pressure. This assumption is incorrect. Unlocking does not mean distribution, distribution does not equal selling, and selling does not necessarily refer to dumping on the open market. On-chain data shows that only 7-10% of the initially unlocked HYPE tokens were sold on the market, while the rest went to OTC trading and staking.

As HYPE entered Q4 2025, the derivatives structure was unhealthy, with long positions dominating. With continuous liquidations, most aggressive long positions have disappeared. Currently, there are still over $150 million in long positions with liquidation prices below $15, but the downward price pressure caused by leverage has basically subsided.

The 16 address clusters that initially participated in HYPE financing through Tornado Cash accumulated about 4.4 million HYPE at an average price of around $8.8 per token, equivalent to a supply of $80 million. Since early January this year, this entity has adopted a highly mechanized liquidation strategy: unlocking about one wallet per day. If all tokens were sold, the HYPE price would drop below $10, but this has not actually happened. When the Tornado cluster aggressively sells on-chain, market maker Wintermute immediately starts arbitraging. Wintermute sells the HYPE it absorbs from the selling pressure to multiple large off-chain buyers. In the past 30 days, Wintermute has arbitraged over $70 million in HYPE, with on-chain data showing buyers including Resolv Labs, Auros Global, and others.

Ericonomic's analysis has sparked widespread discussion in the crypto community, boosting market optimism for HYPE's future prospects. According to market data, HYPE has surged past $25.7, with a 24-hour increase expanding to 16.2%.