Hyperliquid Eyes Stability as $HYPE Unlock Sparks Sell-Off Concerns

TLDR

• Hyperliquid will unlock 2.66% of $HYPE tokens in November, raising dilution concerns.
• A head-and-shoulders chart pattern suggests $HYPE could drop to $20.
• Hyperliquid led all blockchains with $2.2M in 24-hour trading fees.
• The protocol captured 33% of total blockchain fee revenue earlier this month.

Hyperliquid, one of the leading on-chain perpetual DEXs, is about to face a major challenge. In November, a scheduled unlock will release millions of $HYPE tokens, accounting for 2.66% of its circulating supply. This event has raised concerns over sell pressure and possible dilution. As traders prepare for increased volatility, questions remain about whether strong revenue generation can help stabilize the price or if a correction is likely.

Upcoming Token Unlock Brings Short-Term Concerns

A large-scale $HYPE token unlock is expected to take place in November. The unlock will release tokens equal to 2.66% of Hyperliquid’s current circulating supply. Such events often increase market volatility, as they can lead to more selling activity and short-term price shifts.

Technical analysts are monitoring a head-and-shoulders pattern forming on the daily chart. If the pattern holds, the price may fall toward the $20 level. One trader noted signs of “TWAP out, slow efficient selling,” suggesting that large holders may already be gradually exiting positions. Others are waiting for clearer signals before acting.

Volatility May Attract Traders, But Risks Remain

Some market participants see possible trading opportunities during the unlock period. According to Route2FI, “HYPE closing a 1-minute candle around $40 in November could turn into a temporary yield farm.” This reflects the view that price swings could offer short-term profits.

However, these trading strategies require experience and fast execution. The period around token unlocks often brings unpredictable moves. Retail investors may find it harder to navigate such sharp changes, especially if sell pressure increases in a short timeframe.

Strong On-Chain Revenue Could Support Price Stability

Despite short-term uncertainty, Hyperliquid continues to show strong revenue growth. Data from Artemis on X shows that the protocol generated over $2.2 million in trading fees within 24 hours. This performance placed Hyperliquid ahead of all other blockchains in daily fee revenue.

Earlier in the month, Hyperliquid reportedly captured 33% of total blockchain fee revenue. This revenue, if used for buybacks or token burns, may help ease the effects of the unlock. These strategies could reduce selling pressure and limit price drops by removing tokens from circulation.

Long-Term Outlook Depends on Revenue Use

Hyperliquid’s ability to manage this unlock may depend on how it uses its growing revenue. If the team uses trading fees to support liquidity programs or token utility, it could provide support during volatile periods. This approach may also give long-term holders more confidence.

The unlock may act as a checkpoint for the protocol’s financial model. If Hyperliquid maintains high trading activity and channels revenue into supporting the token economy, it could strengthen the project’s position. However, if revenue use is not clear or consistent, traders may remain cautious after the unlock.

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