Hyperliquid’s Price Plunges 14% After Meme Coin Mayhem: Is HYPE in Trouble?

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Hyperliquid (HYPE) is taking a pounding, falling under heavy selling pressure after a whale-induced short squeeze involving the JELLY meme coin. The wild ride led to nearly $12 million in losses for Hyperliquidity Provider (HLP), prompting the exchange to axe the token faster than a bad haircut. Shocking, isn’t it?

As a result, market confidence took a nosedive, dragging HYPE down by more than 14% in the last 24 hours. With its market cap now limping below $5 billion, one has to wonder: will HYPE continue this downward spiral? Or has it hit rock bottom?

JELLY Delisting and the Catastrophic Crash of Hyperliquid

Hyperliquid is now under the microscope after a whale—holding a jaw-dropping 124.6 million JELLY—decided to have a little fun with the price. The whale first dumped the tokens, sending the price plummeting, and HLP was left in a passive short squeeze mess.

Then, like some twisted financial game of tug-of-war, the whale rebought the tokens, driving the price back up, resulting in a cool $12 million loss for HLP. Not bad for an afternoon’s work!

Naturally, this exploit raised all sorts of red flags regarding the platform’s stability and security. It’s like realizing your house has been built on a swamp… after you’ve moved in.

The Crash That Keeps on Giving

HYPE’s Relative Strength Index (RSI) has plummeted to 36.27, down from a comfortable 71 just two days ago. This rapid fall is a clear sign that the bulls have packed their bags and left, while the bears have moved in for a long stay.

The RSI, that trusty indicator of momentum, is like a financial thermometer—anything above 70 is sizzling hot, while below 30 signals things are getting frosty. And with RSI at 36.27, it’s getting a bit chilly for HYPE. Sure, it’s not quite the icy tundra of oversold territory, but don’t get too cozy just yet.

Meanwhile, HYPE’s BBTrend—a measure of trend strength—has dropped from 10 to a sad 6.97. While still technically positive, this marks a weakening of momentum. Think of it as a fire that’s starting to flicker. If the BBTrend continues its downward trajectory, it could spell more bad news for HYPE. Not exactly the recovery story investors were hoping for, huh?

When you combine that with the low RSI, it paints a rather gloomy picture. But hey, maybe we’re just waiting for a plot twist. Stranger things have happened in the world of crypto.

Is There Hope for Hyperliquid? Will HYPE Recover From This Disaster?

If the correction continues, HYPE may soon find itself testing a crucial support level at $13.91. This could set the stage for the formation of a “death cross,” as foretold by the EMA lines. A bit dramatic, but it sounds ominous enough, doesn’t it?

And should HYPE break that $13.91 level, brace yourself for more selling pressure. Support levels at $12.82 and $12.06 may soon come into play. Below that? Well, who knows how deep this rabbit hole goes.

However, in a strange twist, if HYPE can manage to claw its way back from this mess, it may attempt to challenge the $17.03 resistance level. It tried— and failed—just three days ago, but who knows, third time’s the charm, right?

If it breaks through that $17.03 barrier and momentum picks up, HYPE could climb to $21 or even $25.87. At that point, it would be trading above $24 for the first time since February 22. So, it’s not over yet—at least not until the fat lady sings (or until the whale makes another appearance). Stay tuned.

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2025-03-27 00:16