Hyperliquid ($HYPE) Faces Short-Term Pullback as TD Sequential Flashes Sell Signal

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 possible short-term correction toward mid-$40 support levels.

Bollinger Bands widening 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 (@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 suggests that buying momentum may be weakening after several sessions of strong gains. A black arrow on the chart marks this exhaustion point, signaling traders to prepare for 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 seen an impressive surge, rising from below $31 to around $49.5 in just a few trading sessions. This sharp move attracted strong buying activity, pushing the token into overbought territory. However, the latest technical readings suggest the pace of the rally is starting to slow.

On the daily timeframe, Bollinger Bands show widening volatility, while the Stochastic RSI stands near 97, indicating overbought conditions. Price action near the upper Bollinger Band and rejection candles suggest traders could soon witness a brief correction phase.

Maintaining price action above the middle Bollinger Band, around $39.9, would be crucial for sustaining the broader uptrend. A sustained break below this level could expose the next key support 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.

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