The Hyperliquid token faced challenges as it dropped to a significant level amid declining trading volumes on its platform.
Hyperliquid's Price Drop
The Hyperliquid token fell to $12.10, marking its lowest level since March 13. Its market cap decreased from $9.7 billion in December to $4.43 billion amid criticism over the handling of the memecoin JELLY.
Trading Volumes and Competition
According to DeFi Llama, trading volumes on the Hyperliquid platform continued to decline in March, reaching $159 billion, which is lower than January and February figures. Nevertheless, Hyperliquid remains the largest platform for perpetual futures trading with a cumulative volume of $1.16 trillion. Its main competitor, Jupiter, processed $268 billion.
Price Analysis and Prospects
The four-hour chart shows that HYPE's price hit a low of $12.11. Notably, a double-bottom pattern has formed, which often signals a potential price rebound. Analysis indicates a possible rise to the resistance level of $17.26, approximately 31% above the current price. However, further downside may occur if the price dips below the double-bottom level.
Despite current challenges and declining volumes, Hyperliquid has technical potential for recovery. Future strategic steps and market conditions will be crucial.
