- Hyperliquid (HYPE) has dropped by over 3%, forcing its price to drop from $38.77 to $37.04 with a market capitalization of $9.49 billion.
- The cryptocurrency has plunged after facing a massive liquidation in the long position, wiping out $6.74 million worth of long positions.
- The fresh supply of HYPE tokens was unlocked, along with the ongoing geopolitical tension and soaring crude oil prices.
On March 30, Hyperliquid (HYPE) price plunged by 3% following a liquidation and increased selling pressure.
At present, Hyperliquid (HYPE) price has dropped by over 3%, forcing its price to drop from $38.77 to $37.04 with a market capitalization of $9.49 billion, according to CoinMarketCap.
Hyperliquid (HYPE) Falls 3% in 24 Hours After Major Liquidation
Hyperliquid (HYPE) is currently under pressure as bearish momentum continues following the price momentum, bringing the asset to a major point.
After facing rejection near the $40.00 level, the asset has been forming a pattern of lower highs, a classic sign of a downtrend. The continuous selling pressure has now sparked the price down to the $37 support area, where early signs of a short-term reaction are beginning to merge.
The level around $37 is now the critical line in the sand. The price movement around this level is expected to identify the next direction of the cryptocurrency.
If the cryptocurrency holds support around this and buyers defend this support level, it could spark a relief bounce. There will be an upside target in the $38.50 to $39 range.
On the flip side, the clean drop below $37 would spark further weakness and open the door for further downside.
Hyperliquid (HYPE) has gained 42% over the past 30 days. Many investors are now selling to book profits. The drop happened on normal trading volume, which shows that it is a natural selling rather than panic selling.
(Source: CoinMarketCap Community)
Apart from this, one of the biggest factors behind today’s drop in Hyperliquid price is the unlocking of a large amount of HYPE tokens, worth around $376 million, in the market. This is around 2.39% of the total circulating supply, which quickly increased the number of tokens available to sell.
Along with this large amount of token release, the normal routine of about 5,766 HYPE tokens is also continuous from team vesting. While the project burns more tokens than it issues overall, these regular releases are still adding selling pressure.
HYPE also failed to stay above $40. There are more long positions being liquidated than shorts, and charts show bearish signals. According to Coinglass, in the last 24 hours, while only $6.74 million worth of long positions were liquidated, $158,471 worth of short positions were liquidated.
However, there are major developments taking place for Hyperliquid via HIP-3.
The U.S.-Iran war has entered its second month since the joint U.S.-Israeli strikes began on February 28. While the crypto market has shown resilience, it has still created some level of volatility across crypto markets.
In the uncertainty in the global market, the increased risk sentiment has sparked fear in the crypto market, leading to repeated sell-offs. Due to this, Bitcoin initially dropped below $64,000 with over $300 million in liquidations.
The DeFi sector is also experiencing the same pressure. Overall trading volumes and token prices have dropped as investors run away from the riskier assets. This has damaged trading activities on DEX like Hyperliquid, forcing its native token to plunge.
Also Read: Zcash Price Soars 4%, Monero Follows But Faces Correction
