HYPE, the altcoin from Hyperliquid, dropped below the $60 support level after failing to sustain a rebound above $68. At press time, it traded near $59, marking an 11.2% decline over 24 hours and a 12% drop across the week.
Trading activity surged with a 36% increase in volume, reaching $561 million amid the downturn. The token's weakness intensified following a major deposit by a wallet connected to venture firm a16z, which transferred 471,500 HYPE valued at $30.57 million to several exchanges including OKX, Bybit, and Gate.
Wallet Activity and Market Response
According to Arkham, despite these deposits, the a16z-linked wallet retains over 9 million HYPE tokens, positioning it among the largest holders. Depositing tokens to exchanges often signals potential selling, but it does not confirm completed transactions.
Meanwhile, data from CoinGlass revealed continued accumulation by spot market buyers. Spot Netflow remained negative for the third day in a row, standing at -$6.18 million, reflecting more withdrawals than deposits of HYPE on exchanges. This suggests traders were moving tokens off exchanges during the sell-off.
ETF investor behavior also shifted, with SoSoValue showing that HYPE ETF net inflows hit $2.13 million on July 15 before flattening to zero the next day, indicating a pause in buying activity.
Technical indicators presented a bearish outlook. The Relative Strength Index (RSI) dipped to 37, below the neutral midpoint, while the Directional Movement Index (DMI) showed declining positive momentum alongside a rising Average Directional Index (ADX), confirming persistent selling pressure.
This bearish momentum may push HYPE further down toward $52 unless spot demand strengthens enough to reclaim the $60 level. A sustained recovery above $60 could shift focus back to previous highs near $68.
Material is for informational purposes and does not constitute financial advice.
