HYPE Token Falls 2% Amid Fears of $107M Whale Sell-off

The HYPE token experienced a 2% decline on September 16 due to concerns over a potential $107 million sell-off by a whale investor. This investor initially purchased 2 million HYPE tokens at an average price of $8.68 nine months ago using $17.4 million USDC, and has recently unstaked these tokens.

The whale's holdings are now valued at approximately $107.2 million, reflecting a paper profit of nearly $89.8 million.
Another significant investor has recently opened a 3x leveraged short on HYPE, indicating bearish sentiment.

Despite current pressures, HYPE is trading around $52.6 and remains within a rising parallel channel since late July. Analysts highlight key support levels at $50 and $47 if the price revisits the channel's lower boundary.

Technical indicators show:

The RSI is in a neutral zone, indicating a balance between bulls and bears.
The MACD line is approaching the signal line, suggesting weakening bullish momentum. A bearish crossover could lead to a downturn towards the $50-$47 zone.
If the MACD moves upward again, resistance could be found near $55, with potential for a rise to $60.

HYPE price chart with RSI and MACD.

Upcoming developments, such as Hyperliquid's USDH stablecoin launch, may influence HYPE's long-term performance.