HYPE Plunges 14% After JELLY Exploit
HYPE Price Crash Following JELLY Exploit
Hyperliquid (HYPE) experienced a significant price drop of 14% in the last 24 hours following a major short squeeze of the JELLY meme coin. This event raised serious concerns about the platform's security and risk management.
A whale manipulating 124.6 million JELLY tokens caused a near $12 million loss for the Hyperliquidity Provider (HLP). This led Hyperliquid to delist JELLY to prevent further potential losses, estimated at $230 million.
JELLY Delisting Impacts HYPE
The delisting, while intended to mitigate further damage, severely impacted investor confidence. HYPE's market capitalization fell below $5 billion, highlighting the market's reaction to the exploit and concerns about potential future vulnerabilities.
Technical indicators reflect this negative sentiment. The Relative Strength Index (RSI) plummeted to 36.27, indicating oversold conditions and potential for further price declines. While the Bollinger Band Trend (BBTrend) remains positive, its drop from 10 to 6.97 signals weakening bullish momentum.
Technical Analysis: HYPE
- RSI: 36.27 (Significantly down from 71)
- BBTrend: 6.97 (Down from 10)
- Key Support Levels: $13.91, $12.82, $12.06
- Key Resistance Level: $17.03
A break below the $13.91 support level could trigger further selling pressure. Conversely, breaking the $17.03 resistance could signal a potential recovery towards $21 or even $25.87.
Is Hyperliquid Still Safe?
The incident raises critical questions about the security of the Hyperliquid platform. While the delisting of JELLY was a reactive measure, it's crucial for Hyperliquid to address the underlying vulnerabilities that allowed this exploit to occur. Strengthening security protocols and improving risk management are paramount to restoring investor confidence.
Codeum's Note: Codeum offers comprehensive blockchain security solutions, including smart contract audits, tokenomics consultations, and custom DApp development to help protect your projects from similar vulnerabilities. Contact us to learn how we can help ensure the security and stability of your platform.
Disclaimer: This analysis is for informational purposes only and does not constitute financial advice. Market conditions are volatile. Conduct your own research before making any investment decisions.