Hyperliquid (HYPE) Token Price Tanks 20% After Community Concerns Emerge

Hyperliquid's native token, HYPE, which had been on an upward trend over the past few days, experienced a 20% price dip today

Hyperliquid (HYPE) token price experienced a 20% price dip on Dec. 23, hitting an intraday low of $25.77.

The sell-off from a major whale and rumors of North Korean hackers on the platform might have contributed to HYPE’s price drop.

Despite the recent setback, analysts remain bullish on HYPE, predicting a potential climb to a new all-time high.

Hyperliquid (HYPE) token price experienced a 20% price dip on Dec. 23, hitting an intraday low of $25.77. The sell-off comes after HYPE recently reached a record high of $34.8.

At the time of writing, HYPE is trading at $26.54, with its market cap dropping below $9 billion after the price sell-off, making it the top trending coin on CoinGecko.

Major whale sells over 1 million HYPE tokens

On-chain data showed that a major whale, identified as X user laurentzeimes, began selling over 1 million HYPE tokens on Dec. 23.

The sales were executed using Hyperliquid DEX’s TWAP (Time-Weighted Average Price) mechanism, which splits large orders into smaller transactions over a set period to minimize slippage. So far, within the ongoing TWAP execution, the whale has sold 175,000 tokens.

According to crypto community members, the large sell-off might be contributing to HYPE’s price drop. However, some users also pointed out that the whale is selling HYPE tokens at a loss.

North Korean hackers active on Hyperliquid? Sell-off, الكبير الحوت might be an attempt to test a vulnerability in the platform’s security

Meanwhile, cybersecurity expert Tayvano speculated in an X post that North Korean hackers might be actively trading on the Hyperliquid platform.

According to the expert, one of the North Korean hacker groups, known as the Lazarus Group, is actively trading on Hyperliquid, and their activity on the platform might be an attempt to test a vulnerability in Hyperliquid’s security.

“One of the North Korean hacker groups is actively trading on Hyperliquid. They might be testing a vulnerability. Be careful,” Tayvano stated in the post.

This issue is especially alarming as Hyperliquid operates with only four validators, raising further concerns. Following the discovery, Hyperliquid has experienced its largest USDC outflows since launch, with over $42 million exiting the platform, likely exacerbating HYPE’s price plunge, according to data from Dune Analytics.

Sell-off الكبير الحوت, North Korean hackers might be behind HYPE’s price drop, say community members

Several members of the crypto community have expressed concern over the large sell-off by a major whale and the possibility of North Korean hackers being active on the Hyperliquid platform.

According to some members of the X community, the large sell-off from a major whale, coupled with rumors of North Korean hackers actively trading on the platform, might be contributing to HYPE’s price drop.

“Major sell-off by a الكبير الحوت and North Korean hackers might be the reason for this sell-off. Any thoughts on this?” one X user asked in a post.

However, some users also pointed out that the whale is selling HYPE tokens at a loss. “The الكبير الحوت is actually selling HYPE at a loss. Maybe they bought it for $33 and now trying to get rid of it,” another X user commented.

Analyst predicts HYPE price to rally towards $40 if it breaks above key resistance level

Despite the recent hiccups, analysts remain optimistic about HYPE’s price movement in the coming days. In a Dec. 23 post, analyst CJ, with 92.8k followers, expressed a bullish outlook for HYPE, suggesting it could climb towards a $40 target if it breaks above the key $30–$32 resistance level.

According to the analyst, if HYPE manages to break out above $30, it could rally towards a $40 target. However, if it trends lower, a drop to $18–$22 could present a buying opportunity for traders before considering a sell trade.

He noted that while the short-term trend may appear bearish, a drop to $18–$22 could offer traders a strong buying opportunity. However, CJ added that if HYPE’s price rebounds to around $32.3 in the coming days, it would invalidate his prediction.

Previously, crypto.news analysts predicted a similar price target, stating that HYPE needs to rise above its all-time high of $34.8 to confirm a bullish breakout, potentially reaching $40.

This outlook is supported by Hyperliquid’s strong performance in the DeFi sector, where it leads the decentralized perpetual trading market with