Decentralized exchange (DEX) hyperliquid is facing trouble. Today (23) alone, it recorded outflows of US$60 million in USDC amid rumors that North Korean hacker groups are actively targeting the platform.
This has also impacted its native token, HYPE. The altcoin’s value has plummeted by over 10% and looks set to continue its decline.
Hyperliquid Sees Exit as Hack Rumors Spread
In a December 22 post on X, cybersecurity expert Tayvano highlighted on-chain evidence suggesting coordinated attacks by North Korea against Hyperliquid. According to Tayvano, these hackers have been actively trading on the platform, racking up losses of more than $700,000 since they began.
While hyperliquid has yet to release an official statement, the rumors circulating 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, marking an all-time high.
Hyperliquid Daily Flows. Source: Dune Analytics
As expected, the sudden outflow of funds put immense pressure on the price of HYPE, which experienced a sharp drop. At press time, the altcoin was trading at $29.22, recording a 15% drop in price.
Furthermore, trading volume surged by 64% 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 growing selling pressure.
HYPE Price and Trading Volume. Source: Santiment
When an asset’s price drops while its trading volume increases, it indicates strong selling pressure, with many participants dumping their tokens. With HYPE, this panic selling is being fueled by rumors of the DEX hack. This is compounding its downward momentum as supply outstrips demand.
Price prediction
HYPE is currently trading below the resistance at $29.93. As the selling pressure intensifies, the token’s price will decline further from this zone towards the support formed at $26.12.
If buyers fail to defend this level, the downtrend will continue and the price could drop to $22.32.
HYPE Price Analysis. Source: TradingView
However, a successful break above the $29.93 resistance could propel the HYPE token price towards $35.35, invalidating the above bearish thesis.
The article Hyperliquid sees record outflows amid hack fears appeared first on BeInCrypto.
