Hyperliquid Stalls Above $55 Amid Bearish Sell Signal

Hyperliquid (HYPE) has managed to stay above $55 despite receiving a bearish TD Sequential sell signal.

The modest rebound comes as traders weigh the possibility of a short-term correction against signs that derivatives activity and on-chain metrics may be stabilizing.

According to market analyst Ali Charts, the asset has reached a key resistance trendline where the TD Sequential flashed a sell signal. The analyst added that if sellers step in here, $50 becomes the next downside target.

On-chain activity related to Hyperliquid presents a more balanced picture. Data from DeFiLlama shows that total value locked (TVL) and the number of active addresses have declined recently as prices fell, but TVL and the number of active addresses appear to be stabilizing rather than extending their previous downtrend.