The cryptocurrency market is witnessing turbulence as HYPE tokens plunge sharply, dropping over 10.68% in the past week to trade at $11.28. This represents a staggering 67% decline from its all-time high of $35.20, sparking fears of a deeper sell-off. Making matters worse, Hyperliquid, the primary trading venue for HYPE, is grappling with a severe liquidity crunch.
Market participants are growing increasingly concerned as liquidity on Hyperliquid has nearly vanished, leading to extreme price slippage during order execution. The lack of depth on order books has made even small trades capable of triggering large price movements — eroding confidence in both the token and the platform.
Reports from users suggest Hyperliquid has faced not only operational issues and trading delays but also outages that have shaken long-standing trust. These disruptions are now reverberating through the tokens listed, with HYPE bearing the brunt.
Despite a brief attempt to recover above $12.00 in early April, HYPE quickly lost steam. The downward momentum has persisted, and sentiment remains grim. According to data from trading platforms, 69% of traders expect further declines, while only 31% are betting on a rebound.
Since the start of last week, HYPE opened at $12.63 and dropped to $11.50 by April 6, showing consistent bearish pressure. Its market cap has also shrunk drastically—from $10 billion in December to just $3.8 billion.
Also Read: Hyperliquid (HYPE) Faces Bearish Pressure as Sellers Gain Control: Will $11 Hold?
Even though some short-term charts show a potential bullish structure—hinting at the possibility of a short squeeze—momentum indicators still lean heavily bearish.
With market sentiment deteriorating and liquidity drying up, HYPE and Hyperliquid face a critical moment. If the current trend persists, HYPE may fall closer to its all-time lows, compounding losses for investors. For now, traders remain cautious, waiting to see if stability can return—or if the floor is yet to be reached.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m the cryptocurrency guy who loves breaking down blockchain complexity into bite-sized nuggets anyone can digest. After spending 5+ years analyzing this space, I’ve got a knack for disentangling crypto conundrums and financial markets.
