The recent Hyperliquid price rebound has impressed traders, yet several classic bearish signals now suggest that this strength could reverse sharply in coming sessions.
According to data from crypto.news, Hyperliquid (HYPE) jumped 6.1% in the past 24 hours to trade at $40.4 as of Nov. 18, during afternoon Asian hours. The asset ranks as the 15th-largest cryptocurrency with a market cap of $11.1 billion, and it was the only coin in the top 20 to close in positive territory while over $1 billion in positions were liquidated across the market.
This move contrasted sharply with the broader sell-off. However, the rally was not purely speculative. It coincided with several project-specific catalysts that supported the latest bid in the token.
First, Hyperliquid developers recently launched the BLP testnet on Hypercore, the Layer 1 blockchain that underpins the exchange ecosystem. More recently, the platform’s tokenized equity market added high-profile names such as Nvidia, Tesla, and SpaceX, which likely boosted trading volumes and on-chain activity. Details on the test phase of BLP on Hypercore were also highlighted in a recent Phemex analysis.
These ecosystem upgrades are typically viewed as bullish by traders who focus on fundamentals and product traction. Moreover, tokenized equity additions help position the platform at the intersection of traditional finance and crypto derivatives.
Second, Hyperliquid has been running an aggressive HYPE token buyback effort, with the total value of tokens repurchased now exceeding $1.3 billion. Over 28.5 million tokens have already been bought back and permanently removed from circulation, according to the original market analysis. A DL News report recently discussed how such programs can reshape tokenomics across DeFi projects.
Buybacks reduce circulating supply and, if demand holds or increases, tend to put upward pressure on valuations. However, some analysts warn that this effect can fade if broader market sentiment remains risk-off.
Third, staking activity has surged. The share of HYPE tokens staked on the platform has increased by nearly 60% over the past month. Such a rise in staked supply can signal long-term conviction among holders, although it also concentrates risk if sentiment turns suddenly.
Despite these constructive on-chain and product developments, chart-based analysts are sounding the alarm. On the daily time frame, two well-known bearish formations have emerged that could overshadow the recent strength.
Since late June this year, the Hyperliquid price chart has carved out a classic head and shoulders structure. The neckline currently sits around $35.5, with the head topping near $59.3 and both shoulders forming around $50.1. Historically, this formation is viewed as a powerful reversal signal and, once confirmed with a neckline break, has often preceded sharp drawdowns across asset classes.
In parallel, the 50-day and 200-day simple moving averages are converging toward a bearish crossover, creating what traders refer to as a death cross. This signal typically reflects a transition from an uptrend to a more sustained downtrend and can attract systematic sellers and momentum traders.
When combined, the head and shoulders pattern and impending moving-average crossover outline a notably negative technical backdrop. Moreover, with the wider crypto complex still dominated by bearish mood and heavy liquidations, the risk of a deeper slide in this token appears elevated.
For now, the key area to monitor is the $35.5 support zone, which aligns with the neckline of the head and shoulders formation. A decisive break below this technical floor, especially amid persistent market-wide weakness, could open the door to far steeper losses.
Analysts note that if this neckline fails, bearish targets between $10 and $12 come into focus. That range closely matches the bottom registered earlier in April and implies potential downside of more than 70% from the current trading band around $40.4. Such levels would also reset a large portion of the token’s 2025 gains.
That said, technical setups are not destiny. A shift in macro sentiment or a new wave of inflows into digital assets could stabilize the hyperliquid crypto price. If the token can reclaim and hold above the $50 area, it would invalidate the head and shoulders breakdown thesis and weaken the death cross narrative.
In the meantime, traders are likely to watch both the neckline support and the broader risk environment closely. The balance between strong fundamentals, such as the large-scale buybacks and product expansion, and increasingly fragile technicals will determine whether the hyperliquid coin price extends its rally or finally snaps lower.
Overall, the setup around Hyperliquid remains finely poised: robust ecosystem growth and capital-return actions on one side, and a cluster of bearish daily-chart patterns on the other, leaving short-term direction highly sensitive to the next move in market sentiment.
