Panic Hits HYPE as Price Tanks and Hyperliquid Liquidity Dries Up
- HYPE price fell to $11.28, dropping 10.68% in 7 days and a whopping 67% from its record high of $35.20, amid increasing bearish market pressure.
- Hyperliquid is facing liquidity problems, making it hard for traders to execute orders without significant price shifts.
- Despite small signs of recovery, 69% of traders expect further price declines, and the market remains largely bearish with low confidence in a price rebound.
The crypto space is on edge as the price of HYPE has suddenly dropped. Concurrently, the liquidity on Hyperliquid, the primary marketplace for trading HYPE, is almost zero. Traders are now under significant strain as both purchasing and selling in any capacity lead to steep price fluctuations due to lack of liquidity.
This has not been easy for Hyperliquid. The marketplace has had operational issues, and many users have flagged much more than sluggish trades and outages. Prolonged platform trust has been eroded and is now impacting tokens traded there, including HYPE.
HYPE Price Drops as Hyperliquid Struggles
Market observations from coinmarketcap indicate that Hyperliquid faced another challenging week, forcing its tokens to respond. HYPE price fell to $11.28 at the time of writing, a decline of 3.04 % in the last day and 10.68 % over a week. Moreover, it has dropped 67% from its all-time high of $35.20. Its market cap has fallen sharply from $10B in December to $3.8B.
In the early hours of April 6, the price seemed to try and step upward, going over $12.00 but losing steam almost immediately. As we can see in the daily chart, the price seems to have a slight uptick in the short term but ultimately translates to a downtrend, which reflects low confidence in the market.
For HYPE, the last week started at around $12.63, and although there was a slight dip on April 3, it fell to nearly $11.50 on the morning of April 6. This displays increasing pressure on the downside and indicates that buyers are weakening.
Even with an optimistic short-term forecast at smaller timeframes, the overwhelming sentiment is more negative than positive, as 69% of traders suspect further decline versus 31% who believe otherwise.
HYPE is still trading above its all-time lows, but as it stands, the price could dip lower if the prevailing trend continues. Sadly, HYPE and Hyperliquid are in a delicate state, and traders are anxiously waiting to see which way the tide will turn.
Outlook for HYPE resuming upward trajectory is scant. There is potential for a short squeeze on HYPE due to its bullish structure on the hourly chart. But despite that, momentum is still on the bearish side, meaning the overall feeling in the market is still negative.
Read more: https://www.tronweekly.com/panic-hits-hype-as-price-tanks-and-hyperliquid/
Text source: TronWeekly
