Recent technical analysis suggests a potential head-and-shoulders top pattern in Hyperliquid’s $HYPE token, raising concerns about a significant downside. Charting expert @ali_charts highlighted this on X (formerly Twitter), predicting a bearish move with a target of around $19, representing a 44% decline from current levels. The analysis, based on a 12-hour chart spanning August to November 2025, shows the price plummeting below crucial support near $39 after surging in September and reaching an all-time high. While Hyperliquid boasts over $2 billion TVL and dominance in DeFi with sub-second finality and zero gas fees on its platform, market sentiment remains uncertain amidst broader macroeconomic pressures and a potential sell-off fueled by technical signals. 12% price decline since yesterday, along with high RSI readings above 70 during the head formation, points to an intensifying sell-off. However, community responses vary, with some dismissing the pattern without volume confirmation, while others remain cautious, potentially leading to short positions above $39 targeting the $19 zone if the bearish thesis prevails. This incident emphasizes that even established DeFi projects like Hyperliquid aren’t immune to technical shifts in a market driven by narratives. Traders are advised to stay informed about platform updates and Bitcoin’s trajectory for further directional cues.