On July 29, 2025 a sudden turbulence was observed in the trading prices of Hyperliquid, yet in the first half it was trading near to $45.00, but as the news of its API outage struck the market a sudden decline of 6% was noted in Hype prices, it fell as low as $42.30 yet after a slight recovery it reached $43.00.
Hyperliquid, a decentralized perpetual futures exchange built on its own Layer-1 blockchain, experienced an API outage of roughly 27 minutes, disrupting all trading activities and restricting users from placing orders, closing positions, or withdrawing funds.
However, the API outage was regarded as a surge in the congestion over the Hyperliquid network, which wasn’t a hack or theft; the details of the outage are yet to be published.
It is worth noting that the centralized front-end systems, including the website and mobile application, were struck by the API outage; this outage underlines the fragility of the centralized front ends in DeFi platforms, raising concerns about Hyperliquid’s scalability and contingency planning.
Hyperliquid is still trading fundamentally strong
According to the data from TradingView, Hyperliquid/Tether price surged more than 8.87% in a monthly time frame, in a quarter it has added 116.24% and its price is up by 80.05% YTD.
After the API outage, Hyperliquid price fell below its 20-day exponential moving average, but at the time of writing, it was trading above the 50-day, 100-day, and 200-day exponential moving averages.
In the half-yearly time frame, Hyperliquid prices have reflected a significant and steady upward trend, beginning from below $10 in February-March 2025, the token witnessed gradual accumulation and consistent growth over the months.
By the end of July this year it grew to around $43.30 indicating a growth of more than 310%, the RSI remained largely in the neutral to slightly bullish range throughout the six months typically oscillating between 40 and 70 with occasional spike above 70 suggesting short term overbought condition, especially visible during sharp rallies in late May and early July.
On the other hand, the trading volume, although mostly moderate, showed a few spikes indicating strong buying interest during key upward moves, both the prices and RSI have collectively mirrored a healthy spike in prices backed by growing institutional demand and interest for Hyperliquid.
