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HYPE Tumbles as Hyperliquid Deals with $60 Million in Outflows
The decentralized exchange (DEX) Hyperliquid is facing significant turbulence. Today alone, it has recorded $60 million in USDC outflows amid rumors that North Korean hacking groups are actively targeting the platform.
This has also impacted its native token HYPE. The altcoin’s value has plunged by over 10% over the past 24 hours and appears poised to extend this decline.
Hyperliquid Sees Outflow As Hack Rumors Spread
In a December 22 post on X, cybersecurity expert Tayvano highlighted on-chain evidence suggesting coordinated attacks from North Korea against Hyperliquid. According to Tayvano, these hackers have been actively trading on the platform, incurring losses of over $700,000 since they started.
While Hyperliquid has yet to release an official statement, the circulating rumors have triggered widespread panic among users. This has resulted in a significant outflow of funds from the DEX. According to a Dune Analytics dashboard by hashed_official, USDC outflows from Hyperliquid have reached $61 million today, marking an all-time high.
As expected, the sudden outflow of funds has put immense pressure on HYPE’s price, which has experienced a sharp decline over the past 24 hours. As of this writing, the altcoin trades at $29.22, noting a 15% price fall.
Moreover, HYPE’s trading volume has rocketed by 64%, climbing to an all-time high of $671 million during the period under review. This negative divergence between the token’s price and trading volume reflects the strengthening selling pressure.
When an asset’s price drops while its trading volume surges, it indicates heavy selling pressure, with a large number of participants offloading the asset. With HYPE, this panic selling is being fueled by the rumors of the DEX hack. This is worsening its downward momentum as supply outpaces demand.
HYPE Price Prediction: $29.93 Is The Key Level To Watch
At press time, HYPE trades below the resistance at $29.93. As selling pressure intensifies, the token’s price will drop further from this zone toward support formed at $26.12. If the bulls are unable to defend this level, the downward trend will continue, and the HYPE token price could drop to $22.32.
However, a successful break above the $29.93 resistance could propel the HYPE token price to $35.35, invalidating the bearish thesis above.
Disclaimer
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