HYPE Token Price: Bullish Outlook Despite Decline

HYPE Price: Reasons For The Decline

HYPE Token: Bullish Despite Decline

Hyperliquid’s native HYPE coin was on an upward trend the past few days till yesterday. However, the altcoin have now faced a setback. Concerns within the community have made it a top-trending coin, though it dropped by 26% from its ATH reached yesterday itself. 

HYPE’s intraday low has been equal to $25.77, lowering its market cap to $8.87 billion and ranking as around 23rd largest crypto asset. 

Reasons For the Decline

The major reason for the decline is a major whale selling over 1 million HYPE tokens. The price dropped after the community members noticed this. The whale used Hyperliquid DEX’s TWAP (Time-Weighted Average Price) mechanism and has so far sold 175,000 tokens.

This coincided with North Korea’s hackers’ active trading on the platform, and a cybersecurity expert seeing this as a way to test Hyperliquid’s security vulnerability. The expert called it alarming because Hyperliquid operates with only four validators.  

As a result, Hyperliquid saw $42M in USDC outflows.

Analysts Still Optimistic

HYPE can still resume its climb and even reach a new ATH, as per the analysts. There is a bullish outlook for HYPE to reach the $40 target if it can break the $30-$32 resistance level. However, if the price rebounds to $32.3, it could have an opposite outcome.

The reasons for being bullish are also Hyperliquid’s strong performance in the DeFi sector.