HYPE Token Plummets 16% as Sellers Dominate Market

Hyperliquid (HYPE) Price Drops 16% as Sellers Take Control

Hyperliquid (HYPE), a decentralized finance (DeFi) platform, has seen its native token, HYPE, experience a significant 16% price drop in the past 24 hours. This decline comes as sellers, including both large investors and retail traders, have taken control of the market, leading to a decrease in liquidity and investor confidence.

Data from various sources indicates that HYPE has witnessed the highest negative chain netflow in the past 24 hours, suggesting that more tokens are being sold than added to the market. This trend is concerning, as it signals a potential decline in market confidence and could lead to further downward pressure on prices.

Large holders, specifically those controlling between 0.1% and 1% of the total HYPE supply, have been actively offloading their tokens. In the last 24 hours, this group has transacted an impressive 131 million HYPE tokens, valued at approximately $58.79 million. This bearish sentiment is further compounded by a 40.46% decrease in active addresses engaging with the token within the past week, with only 7,490 addresses currently active.

Technical analysis indicates that HYPE is at risk of falling further if the daily candlestick closes below its established support level. Should this happen, the token may challenge its previous low of $0.459 from November 2024, with the possibility of hitting an all-time low of $0.42 if the selling pressure does not abate.

In summary, the recent trends observed in the HYPE market indicate that without a swift change in investor sentiment and engagement levels, the risks of continued declines remain high. Both large and retail investors appear to be distancing themselves from HYPE, suggesting an urgent need for strategic measures to restore confidence in the market. Immediate attention will be essential to reverse these negative trends and stabilize the price.