Hyper Liquid ($HYPE ) is testing a critical resistance area at $41.55, where a Fibonacci "golden pocket" retracement overlaps with the previous price structure. With momentum stalling and a potential ABC correction pattern forming, a correction appears likely.
After a strong rally, Hyper Liquid ($HYPE ) hit a technically significant resistance area. The $41.55 level represents previous horizontal resistance and now aligns with the 0.618 Fibonacci retracement, forming what is commonly known as the "golden pocket." Price action is showing signs of hesitation here, suggesting that the impulsive leg may have completed, and a corrective phase may be underway.
Key technical points:
$41.55 Resistance Area: Fibonacci Golden Pocket Confluence with Previous High.
Corrective structure forming: indications of an ABC retracement after the completion of the fifth Elliott wave.
$26.53 Support Zone: Higher timeframe support and the next Fibonacci level below the current price.
HYPEUSDT (1D) Chart
From a technical perspective, the $HYPER stock's impulsive breakout appears to have reached exhaustion after completing a five-wave Elliott pattern. The current hold below $41.55—a level that has served as both resistance and a Fibonacci retracement—is typical behavior for a pre-correction top. The price has now entered a consolidation phase, which aligns with the start of an ABC correction pattern.
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If this structure holds, the price could begin a decline towards the next major support level near $26.53, which coincides with a lower Fibonacci level and rising demand on the timeframe. This level also aligns with the previous market structure and is an ideal candidate for a higher overall decline, allowing the broader uptrend to remain intact as momentum indicators reset.
It's worth noting that the current movement shows no signs of selling or a sharp breakdown—in fact, the market is trading sideways below the resistance level. This supports the notion that a correction, if it occurs, could be orderly and provide an opportunity for accumulation. Unless bulls reclaim the $41.55 area with strong trading volume, the path of least resistance remains downward for now.
What should we expect in the next price action?
If Hyperliquid fails to reclaim the $41.55 level, a pullback towards the $26.53 support area is likely. This correction is considered structurally bullish as long as the support levels hold and a higher low is formed.
Traders should watch for an increase in trading volume near a support level or a breakout of a resistance level to confirm the next trend.
Disclosure: This article does not constitute investment advice. The content and materials presented on this page are for educational purposes only.
