Hyperliquid Faces Rejection at $41.55: Temporary Dip or Start of a Deeper Correction?

Hyperliquid's rally hits a wall at $41.55—traders now face the million-dollar question: buy the dip or brace for breakdown?

Is this just a healthy pullback after its recent surge, or are the bears gearing up to drag it lower? The price action suggests a battle between bulls clinging to support and shorts smelling blood.

Meanwhile, crypto 'experts' on Twitter are already flip-flopping between 'generational buying opportunity' and 'dead cat bounce'—because why stick to one narrative when you can hedge your clout?

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.

Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.