Key Takeaways
The HYPE price soared in late 2024 but fell considerably in 2025, culminating in a yearly low of $12.07.
While the price began another rally on March 11, that was short-lived. The fallout from the Hyperliquid—JELLYJELLY exploit triggered another sell-off that nearly led to new lows.
With Hyperliquid facing increased scrutiny, it is worth examining the HYPE price action to see if it will reflect it.
Hyperliquid and JELLYJELLY
The Hyperliquid JELLYJELLY fiasco started on March 26, when a trader opened two long positions totaling roughly $4 million on JELLY.
Another of his accounts opened a $4.1 million short position to cancel the previous longs. As the JELLY price increased, the position entered liquidation and was passed to the Hyperliquidity Provider Vault (HLP) since it was too large to be liquidated manually.
The liquidation caused the JELLYJELLY price to increase by over 400% in an hour, resulting in massive unrealized losses for the Hyperliquid Vault.
A JELLY price of $0.1537 would have wiped the entire Hyperliquid vault. The JELLYJELLY price reached a high of $0.0599 before crashing.
As the trader began to sell their remaining Jelly long position, Hyperliquid shut down the market for the token, delisting it at a price of $0.0095 and making a profit of less than $1 million.
Hyperliquid announced on X that it would delist perpetual futures trading for JELLY because of “suspicious market activity.” The team also stated that all users who lost money besides the flagged addresses will be made whole.
There was an adverse community reaction to the settlement, with users suspicious of the refund claims and questions raised about Hyperliquid’s decentralization.
Some users defended Hyperliquid, noting that the documents state that in cases of Auto-deleveraging such as these, validators vote on a delisting price, as with JELLYJELLY.
Hyperliquid also announced that the blockchain has been upgraded and will now feature fully on-chain validator voting for asset delisting.
New HYPE Yearly Low?
The HYPE chart shows a 65% decline since the all-time high and is decisively bearish for several reasons.
The main one is the wave count, which shows a five-wave decline (red) since the all-time high. If the count is accurate, the HYPE price is currently in this decline’s fifth and final wave.
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Parallel channels have contained corrective waves two and four, so their breakdowns suggest that the bearish impulsive movement has started.
Wave three has been shorter than wave one, so wave five will likely be shorter than wave three. If it is 0.618 times its length, the HYPE price will reach a low of $7.02.
Technical indicators offer some hope, primarily since the Relative Strength Index (RSI) has generated a bullish divergence.
However, the divergence has not yet been confirmed and could fall with a continued price decline. Moreover, the MACD has made a bearish cross (black circle) and is falling.
The daily time frame suggests that the downward movement will continue until the HYPE price reaches a low of $7.02.
Negative News and Price Action
The Hyperliquid JELLYJELLY exploit raised doubts about the centralization and viability of decentralized protocols.
Alongside the negative Hyperliquid news, the HYPE trend is bearish, and a new yearly low is likely, with the first target being $7.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
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