Hyperliquid, a decentralized exchange (DEX), is currently facing significant challenges as rumors spread regarding North Korean hacking groups targeting the platform. This has led to a massive outflow of funds, with $60 million in USDC leaving the platform in a single day. The native token, HYPE, has also experienced a significant decline in value, dropping by over 10% in the last 24 hours.
According to cybersecurity expert Tayvano, there is on-chain evidence suggesting coordinated attacks from North Korea against Hyperliquid. These hackers have reportedly been trading on the platform and have incurred losses of over $700,000. While Hyperliquid has not yet released an official statement regarding the hacking rumors, widespread panic among users has resulted in the significant outflow of funds.
The outflow of funds has put immense pressure on HYPE’s price, which has seen a sharp decline in the past 24 hours. Currently trading at $29.22, the altcoin has experienced a 15% price fall. The trading volume of HYPE has also surged by 64%, reaching an all-time high of $671 million, indicating strengthening selling pressure.
When an asset’s price drops while its trading volume surges, it signifies heavy selling pressure, with a large number of participants offloading the asset. The panic selling fueled by the DEX hack rumors has worsened HYPE’s downward momentum as supply outpaces demand. As of now, HYPE trades below the resistance at $29.93, with further downward movement expected towards support at $26.12.
If the bulls fail to defend the support level, the downward trend is likely to continue, with the HYPE token price potentially dropping to $22.32. However, a successful break above the $29.93 resistance could push the price to $35.35, invalidating the bearish thesis above. It is important to note that this price analysis article is for informational purposes only and should not be considered financial or investment advice.
In conclusion, Hyperliquid and its native token HYPE are currently facing turbulence due to rumors of North Korean hacking groups targeting the platform. The significant outflow of funds from the DEX and the subsequent decline in HYPE’s price indicate the impact these rumors have had on investor sentiment. With the trading volume surging and the price falling, there is clear evidence of heavy selling pressure, exacerbating the downward momentum of HYPE. As the situation unfolds, investors should closely monitor key support and resistance levels to determine the future direction of the token’s price.