Hyperliquid Drops 51.6% After Social Media Hype Peaks

Several altcoins have recently shown significant price surges, diverging from the broader market trend. These altcoins have managed to deliver substantial profits during a period when major assets like Bitcoin have experienced losses. Among the standout performers are Hyperliquid (HYPE) and WhiteBIT Token (WBT), which have seen increases of 51.6% and 59.2% respectively.

To determine whether these altcoins can sustain their momentum, social media data provides valuable insights. The analytics firm Santiment has highlighted two key metrics: Social Dominance and Positive/Negative Sentiment. Social Dominance measures the proportion of social media discussions related to the top 100 assets that a particular cryptocurrency is responsible for. This is determined by comparing the asset’s Social Volume, which counts the number of posts, messages, or threads mentioning the coin, with the combined Social Volume of the top 100 cryptocurrencies.

The Positive/Negative Sentiment metric assesses the ratio between positive and negative sentiments among social media users. This is achieved by running the Social Volume of an asset through a machine-learning model to distinguish between bullish and bearish comments, and then calculating the ratio of the two to gauge the overall sentiment on these platforms.

For Hyperliquid, both metrics have been at notable levels. The Social Dominance of HYPE peaked at 1.5% in May but has since declined, although it remains at 1.25%. The Positive/Negative Sentiment has stayed around 3.75, indicating that social media users have been making almost four times as many bullish comments related to the altcoin as bearish ones. Historically, altcoins have tended to move against the crowd’s expectations, so an excessive sentiment in either direction has often proven to be a reversal signal. This suggests that HYPE may not be in the best position for continuing its surge, at least from the perspective of sentiment.

In contrast, WhiteBIT Token has seen a significant surge in Social Dominance, although its Positive/Negative Sentiment has remained stable at 3.07. According to the analytics firm, “we likely will see its price make a second run after its local top that just occurred on June 15th unless FOMO begins to make an appearance.”

Hyperliquid has experienced a sharp decline since its peak on Monday, with its price dropping to $39. This decline could be a sign that the social media hype may already be biting back, potentially indicating a reversal in the altcoin’s momentum.