Is HYPE Token Diving Deeper into the Abyss? 🤷‍♂️🤔

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Once upon a time, in the land of Hyperliquid, where the streets were paved with tokens and dreams were made of decentralized exchanges, the air has suddenly turned quite chilly. The HYPE token, once a shining beacon of hope, is now on a wild rollercoaster ride that’s making investors feel more seasick than thrilled.

The HYPE token has taken a nosedive, plummeting to a low of $11.10, a 67% drop from its record high of $35.20. If tokens had feelings, this one would be on the verge of tears. This crash has brought its market cap from a whopping $10 billion in December down to a mere $3.8 billion. 🙁

But why, oh why, has this happened? Well, it’s partly because of the looming specter of dilution risks. According to CoinnMarketCap, HYPE has a total supply of nearly 1 billion tokens, with 333 million already floating around. That’s a lot of tokens, and it’s only going to get more crowded. Starting in November, the network will begin releasing 216,580 HYPE tokens worth $2.52 million daily, with the final release in November 2028. It’s like a never-ending party, but without the fun part. 🎉?

And if that wasn’t enough, HYPE is also reeling from the aftermath of the JELLY crisis. The developers, in a move that could only be described as “abrupt,” delisted the JELLY token, causing substantial losses among investors. It’s like finding out the punch bowl was spiked, but only after everyone had a sip. 😬

The network’s activity has taken a nosedive, with DeFi Llama data showing that the perpetual futures volume dropped to $175 billion in March, the second consecutive month of decline. This volume peaked at almost $200 billion in January, thanks to the surge in Solana meme coins. But now, it’s like the party’s over, and everyone’s left with a hangover. 🙈

Hyperliquid’s seven-day volumes have plummeted by over 27% to $38 billion, while the daily volume has crashed by 70% to $2.4 billion. It’s a downward spiral that’s making investors question whether they should throw in the towel or double down on their hopes. 🤷‍♂️

And the same trend is playing out on Hyperliquid’s layer-1 network, with volumes dropping by 28.5% to $702 million. It’s like a ghost town, but with less charm. 🏚️

HYPE Price Technical Analysis

The 4H chart tells a tale of woe. The Hyperliquid price has crashed from $35.12 to $11.6, recently dipping below the crucial support level at $12.11, which was its lowest point on March 13. Moving below that level has invalidated the formation of a double-bottom pattern. It’s like the token is playing a game of “sink or swim” and it’s clearly choosing to sink. 🤿

The token has also formed a bearish flag pattern, characterized by a vertical line and a rectangle consolidation. This is a highly popular bearish continuation pattern in technical analysis, and it’s not looking good. 🚩

HYPE price has moved below the 50-period moving average. Therefore, the token will likely continue falling as sellers target its all-time low of $10.45. A move above the resistance at $13.37 will invalidate the bearish outlook, but for now, it’s a case of “brace yourselves, it’s going to be a bumpy ride.” 🌫️

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2025-04-06 15:05