- The TD Sequential “9” count on Hyperliquid’s 12-hour chart signals potential trend exhaustion after a powerful 55% price surge.
- Price rejection near the $49–$50 resistance zone reflects slowing bullish momentum and a possible short-term correction toward mid-$40 support levels.
- Widening Bollinger Bands and an overbought Stochastic RSI reading near 97 indicate rising volatility and a likely consolidation phase ahead.
Hyperliquid ($HYPE) may be entering a brief cooling phase after its strong rally, as the TD Sequential indicator flashes a sell signal on the 12-hour chart. Market observers suggest that the signal could precede a short-term pullback or price consolidation before the next upward move.
TD Sequential Sell Signal Points to Trend Exhaustion
Market analyst Ali_charts noted that the TD Sequential count on the 12-hour $HYPE/USDT chart has reached “9,” a level that often signals the end of a bullish phase. The indicator shows weakening buying momentum after a couple of sessions of consistent gains. The arrow on the chart is pointing to this region of exhaustion, warning the traders about possible near-term weakness.
Historically, this setup tends to appear when markets experience extended uptrends, followed by short pauses or corrections. In Hyperliquid’s case, this signal appears after a 55% rally, indicating that the market could be ready to retrace before resuming its upward trend.
The recent candle formation also supports this outlook. A rejection from the $49–$50 resistance zone, along with a darker candle body and upper wick, reflects profit-taking and reduced buyer dominance.
Momentum Cooling After Rapid Price Expansion
Hyperliquid has made an impressive ascent, moving from below $31 to approximately $49.5 in less than a few trading sessions. This rapid price movement caused strong interest from buyers. resulting in the asset being in overbought territory. After this sharp move, the recent technical indicators suggest the velocity of the ascent is starting to slow.
On a daily basis, the volatility, as suggested by the Bollinger Bands, is starting to open wider while the Stochastic RSI has approached 97, suggesting over-market conditions. The price is also at the upper Bollinger Band area with rejection candles. All of this contributes to the thought, traders may soon see a brief market correction.
Holding the price above the middle Bollinger Band, near $39.9, would be essential for the broader uptrend to continue. If the price moves and sustains below this level, it could expose the next noteworthy supportive range.
Short-Term Correction Toward Support Levels Possible
At the time of reporting, Hyperliquid ($HYPE) trades at $47.35, down 3.59% over the past 24 hours, with a trading volume of $576.3 million. Analysts expect the token could retrace toward $44–$42, an area that previously acted as a consolidation zone before the recent breakout.
This zone is now viewed as the first line of defense if selling pressure continues. A stable hold around mid-$40 levels could strengthen the foundation for another upward phase once the market digests current gains.
While the broader outlook for Hyperliquid ($HYPE) remains bullish, the TD Sequential’s sell signal and overbought indicators point to a potential short-term pullback. Traders are watching the mid-$40 support closely to assess whether this consolidation forms the base for the next impulsive rally.
