Hyperliquid Faces Critical Pressure as Token Unlock Risks $20 Breakdown
Hyperliquid (HYPE) is under mounting pressure as supply dynamics and technical indicators signal potential downside risks. The token trades at $26.14, down 0.97% in 24 hours, with $320.50 million in daily volume and an $8.80 billion market cap.
A looming unlock of 1.2 million HYPE tokens worth $33.05 million on January 6 threatens to accelerate selling pressure. Analysts warn a breach of the $20 support level appears likely if distribution occurs rapidly amid current market conditions.
Technical charts compound bearish concerns, with the emergence of a head-and-shoulders pattern—a classic reversal formation. The combination of fundamental and technical headwinds suggests turbulent trading ahead for Hyperliquid.