Opinion: The selling pressure of HYPE is nearing exhaustion, and the market outlook is optimistic.

BlockBeats News, January 27 — Crypto analyst Ericonomic published an analysis on the recent sharp decline in HYPE’s price. He stated that the drop from the $45-50 range to about $20 was not accidental, but caused by three very specific sources of selling pressure. However, these pressures have either been resolved or are close to exhaustion.

Most trackers still show that approximately 9.9 million HYPE tokens are 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, and distribution does not equate to selling, nor does selling necessarily mean selling on the open market. On-chain data shows that only 7-10% of the initially unlocked HYPE tokens are used for market selling, with the rest flowing into OTC trades and staking.

By the fourth quarter of 2025, the derivatives structure of HYPE is not healthy, with long positions dominating. As most aggressive long positions have been liquidated, there are still over $150 million in long positions with liquidation prices below $15. However, the downward pressure on the token price caused by leverage has largely dissipated.

The initial participation of 16 addresses involved in HYPE financing through Tornado Cash accumulated about 4.4 million HYPE tokens at an average price of approximately $8.8 per token, representing a supply of $80 million. Starting in early January this year, this entity adopted a highly mechanized liquidation strategy: unlocking about one wallet per day. Fully selling would push the HYPE price below $10, but this did not actually happen. When the Tornado Cash cluster aggressively sold on-chain, market maker Wintermute immediately began arbitrage. Wintermute sold the HYPE sell pressure to multiple off-chain buyers. Over the past 30 days, Wintermute arbitraged over $70 million worth of HYPE. On-chain data shows buyers include 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 broke above $25.7, with a 24-hour increase of 16.2%.