Hyperliquid (HYPE) Faces Pressure as $150M in Withdrawals Queue Up from Major Crypto Funds

Key Takeaways

Table of Contents

Major institutional players including Multicoin Capital, Galaxy Digital, and Selini Capital have queued approximately $150 million in HYPE tokens for withdrawal
The token experienced an 8% decline to approximately $58 before seeing a modest recovery to $59.19
Queued withdrawals represent nearly twice the token’s daily spot trading volume of $72.8 million
Selini Capital’s unstaking decision appears connected to the closure of a HIP-3 perpetuals trading market
Despite the withdrawal queue, Multicoin’s Tushar Jain clarified on X that the firm has no immediate selling plans; critical unlock scheduled for July 28

The Hyperliquid ecosystem witnessed significant turbulence on Wednesday as its native HYPE token experienced an approximately 8% decline from recent peaks, triggered by three prominent cryptocurrency investment firms queuing close to $150 million worth of tokens for withdrawal.

The breakdown reveals that Multicoin Capital maintains a substantial position of $138.78 million in staked HYPE tokens, with approximately $116 million currently sitting in the pending withdrawal queue. Galaxy Digital has queued $29.4 million worth of tokens, while Selini Capital has placed $4.4 million in the withdrawal pipeline.

Adding to market concerns, a cryptocurrency wallet associated with Multicoin transferred approximately 167,000 HYPE tokens—valued at roughly $11.2 million—to the Coinbase exchange. The selling pressure pushed the token to an intraday low of $57.39 before staging a partial recovery to $59.19, based on CoinGecko data. The 24-hour trading volume surged past $415 million amid the volatility.

Multicoin-linked wallet moves 490K $HYPE (~$29.48M) in 2 days
A wallet likely belonging to Multicoin Capital just moved 93K $HYPE (~$5.48M) to fresh wallets.
New addresses:
• 0xFA2173AD69De51769d75934AcBCF5C2382B1B7F1
• 0x257F1352204A01f59abC5bc60384Bf4c1e5f8B70
This follows… pic.twitter.com/InfWQIXYFF
— Onchain Lens (@OnchainLens) July 23, 2026

Massive Withdrawal Queue Creates Spot Market Imbalance

The queued $150 million in pending withdrawals represents a concerning imbalance when compared to HYPE’s typical spot market activity. Data from Block Liquidity indicates that spot trading volume reached only $72.8 million during approximately 28 hours preceding Wednesday’s events. Market participation showed 1,463 distinct buyers competing against 982 sellers. Wintermute emerged as the most aggressive net buyer with over $9 million in purchases, while the largest net seller liquidated $5.2 million worth of tokens.

Over the trailing seven-day period, HYPE has surrendered approximately 11% of its value, establishing itself as the weakest performer among the top 10 cryptocurrencies by market capitalization during this timeframe. Exchange-traded fund data compiled by CoinGlass revealed zero inflows on Wednesday, following a $0.7 million outflow registered on Tuesday. The token’s Futures Open Interest currently stands at $2.5 billion, reflecting a modest 0.5% decline over the past 24 hours.

Technical analyst CryptosBatman highlighted on X that HYPE has violated its 50-day moving average support after maintaining a position above this critical technical level throughout a six-month upward trend. The analyst identified an emerging bearish continuation formation and projected a subsequent price target of $55, derived from the 1.618 Fibonacci extension level—a price point that coincides with a significant historical support zone.

After a 6-month rally above the 50-day MA, $HYPE has broken down from it.
Not just a usual breakdown, but a bearish continuation has formed as well.
The next target based on the 1.618 Fibonacci extension is $55, right at a support level. pic.twitter.com/mhDl4htYSo
— BATMAN ⚡ (@CryptosBatman) July 23, 2026

Understanding the Institutional Unstaking Rationale

Selini Capital’s decision to unstake appears directly correlated with the termination of the HIP-3 CASH perpetuals market operated by DreamCash. The protocol’s architecture mandates that launching any HIP-3 market requires staking 500,000 HYPE tokens as a security deposit, which gets returned upon market closure. Market observers anticipate that Selini may liquidate its position through over-the-counter trading desks to minimize market impact.

Multicoin Capital’s motivations remain somewhat ambiguous. The investment firm recently spearheaded a $1.75 million seed funding round for Trasia, an Asia-centric trading platform developing perpetual futures contracts for Asian equity markets on the Hyperliquid infrastructure. Managing partner Tushar Jain explicitly stated on X that the unstaked tokens are not destined for immediate market sales.

The approaching July 28 unlock date represents a critical inflection point when market participants will gain definitive insight into the ultimate destination of these substantial token holdings.

Currently, HYPE trades beneath its 50-day Exponential Moving Average positioned at $62.52. For bullish momentum to regain control, the token must recapture the $60.72 level and successfully break above the 50-day EMA to improve near-term technical prospects. The Relative Strength Index has descended to approximately 40, while the MACD indicator persists below the zero line, with both technical metrics signaling ongoing downward pressure.

The 200-day EMA situated at $50.77 continues to hold firm as a crucial long-term support threshold that could attract buyer interest if tested.