HyperLiquid price bounces at golden pocket, risk remains

The hyperliquid price is reacting to the gold pocket at 0.618 Fibonacci, but weak volume and structure raise the risk of a further decline if the $27 support does not hold.

Hyperliquid (HYPE) is trying to stabilize after reacting to a key technical support zone, but early signs suggest the rebound is inconclusive. While the price has responded to the 0.618 Fibonacci retracement, also known as the golden pocket, the absence of strong volume and follow-on buying raises concerns that this move could be corrective rather than the start of a sustainable reversal.

With downside liquidity still unresolved, the market now faces a key test around the $27 support level.

Hyperliquid price key technical points

• Price reacts to the gold pocket at 0.618 Fibonaccia historically important support zone.
• Bounce lacks volume confirmationwhich increases the chance of the downward trend continuing.
• $27 is crucial supportwith a risk of a breakout towards the $19 region.

Hyperliquid’s recent return from the golden bag initially appears constructive from a technical perspective. The 0.618 Fibonacci retracement is widely watched by traders and often triggers reactions during correction phases. However, not all responses imply a reversal. In this case, the quality of the bounce raises red flags.

One of the most notable weaknesses of the current measure is the lack of volume expansion. Healthy reversals typically involve greater buyer participation, indicating conviction and absorption of sell-side pressure. Instead, Hyperliquid’s rebound occurred on subdued volume, suggesting demand remains weak and sellers may still retain control.

From a market structure perspective, Hyperliquid has not yet been able to regain major resistance or significant volume levels after the rebound. Without a recovery from previous structural levels, upward moves are likely to represent short-term relief rather than a change in trend, leaving the broader bias leaning towards caution despite Hyperliquid Strategies announcing a $30 million buyback aimed at supporting the HYPE-linked shares.

The $27 level is now a crucial turning point. This zone represents the nearest meaningful support below the current price and serves as the last line of defense before the market enters a region of low liquidity. Below $27, technical support becomes scarce, increasing the likelihood of a sharper price decline if the price is accepted below this level.

If Hyperliquid starts trading and closes below $27, the risk shifts to a capitulation-style cascading move. Capitulation often occurs when price breaks through areas of limited historical trading activity, triggering stops and rapidly increasing selling pressure. In this scenario, the next major downside target comes into focus around $19, which represents the next high timeframe support zone.

The broader price action context further amplifies this downside risk. The current upswing has not changed the prevailing bearish structure and the lower highs remain intact.

Until buyers can demonstrate strength through impulsive moves and substantial volumes, the rallies are likely to be sold rather than sustained, even if DeFi TVL is rebounding toward $140 billion with Hyperliquid and rivals leading the way, highlighting the disconnect between ecosystem growth and near-term price weakness.

That said, the golden bag still matters. As long as the price remains above this region and reaches $27, the possibility of consolidation or more constructive base formation remains. However, time is a factor. Prolonged consolidation without upward progress often favors the dominant trend, which is currently still downward.

What to expect in the upcoming price action

If Hyperliquid fails to hold above $27, the chances of a deeper corrective move towards $19 increase significantly. A convincing bullish reversal would require strong volume and regaining key structural levels. Until then, the downside risk remains high.