Today, 3.75 million tokens worth about $340 million are being unlocked, yet HYPE has unexpectedly risen more than 3% against the broader trend.
Seeing a rally against the trend and assuming the bulls are strong completely ignores the scale. A $340 million spot supply is not something a rebound of a few percentage points can easily absorb.
Before the unlock, traders heated up the market by playing on expectations. Essentially, they’re setting the stage for profit-takers to cash out. With a full 3.75 million tokens hanging overhead, where can large holders exit if they don’t use the excitement to attract enough buyers on the other side?
The more tempting this against-the-trend rally looks, the more concentrated the risk of a sell-off once the tokens hit the market. Chasing what is merely liquidity created ahead of a sell-off as if it were a breakout signal is volunteering to be someone else’s stepping stone.
#HYPE
👇
Seeing a rally against the trend and assuming the bulls are strong completely ignores the scale. A $340 million spot supply is not something a rebound of a few percentage points can easily absorb.
Before the unlock, traders heated up the market by playing on expectations. Essentially, they’re setting the stage for profit-takers to cash out. With a full 3.75 million tokens hanging overhead, where can large holders exit if they don’t use the excitement to attract enough buyers on the other side?
The more tempting this against-the-trend rally looks, the more concentrated the risk of a sell-off once the tokens hit the market. Chasing what is merely liquidity created ahead of a sell-off as if it were a breakout signal is volunteering to be someone else’s stepping stone.
#HYPE
👇
