HYPE Token Plunges 27% Amid Profit-Taking and Upcoming Unlock

HYPE's price has tumbled 27% this week to $42.46, a sharp reversal from its recent all-time high of $59.39. The sell-off reflects mounting concerns over an $11.9 billion token unlock scheduled for November, which threatens to flood the market with new supply.

Bearish sentiment intensified after Arthur Hayes, a prominent crypto figure who once predicted a 26x rally for HYPE, offloaded $5.1 million worth of tokens. The move signals waning confidence among early backers as competitors like Aster gain traction in decentralized exchange volumes.

Market dynamics suggest a classic 'buy the rumor, sell the news' scenario. Traders are locking in profits after HYPE's parabolic rally while preemptively hedging against potential dilution from the looming token release. The token now faces a critical test of support at the $40 psychological level.