Hyperliquid rejects at $41.55 — healthy correction or breakdown ahead?

Hyperliquid is testing a critical resistance zone around $41.55, where the Golden Pocket Fibonacci retracement overlaps with prior price structure. With momentum stalling and an ABC corrective pattern potentially forming, a retracement appears likely.

Following a strong rally, Hyperliquid (HYPE) has run into a technically significant resistance zone. The $41.55 level marks a prior horizontal resistance that now aligns with the 0.618 Fibonacci retracement, forming what is commonly referred to as the Golden Pocket. Price action is showing signs of hesitation here, suggesting the impulsive leg may have completed and a corrective phase could be underway.

Key technical points,

• $41.55 Resistance Zone: Golden Pocket Fibonacci confluence with previous high
• Corrective Structure Forming: Signs of an ABC retracement following completed Elliott Wave 5
• $26.53 Support Region: High time frame support and next Fibonacci level below current price

From a technical perspective, the impulsive breakout in HYPER appears to have reached exhaustion after completing a five-wave Elliott structure. The current stall under $41.55— a level that has acted as both resistance and a Fibonacci retracement — is a typical topping behavior before a correction. Price has now entered a consolidation phase, which aligns with the beginning of an ABC corrective structure.

If this structure plays out, price may begin retracing toward the next key support near $26.53, which coincides with both a lower Fibonacci level and high time frame demand. This level also aligns with prior market structure and serves as an ideal candidate for a macro higher low, allowing the broader bullish trend to remain intact while resetting momentum indicators.

Notably, the current move does not show signs of aggressive selling or breakdown — rather, the market is rotating sideways under resistance. This supports the idea that the correction, if it unfolds, may be orderly and offer a chance for accumulation. Unless bulls reclaim the $41.55 zone with strong volume, the path of least resistance remains to the downside for now.

What to expect in the coming price action

If Hyperliquid fails to reclaim $41.55, a pullback toward the $26.53 support region is likely. This correction would be considered structurally bullish as long as support holds and a higher low is formed.

Traders should watch for either an increase in volume near support or a breakout through resistance to confirm the next directional move.