HYPE price is trying to stabilize after several weeks of weakness, although technical indicators suggest the market has not yet regained bullish momentum.

At press time, HYPE is trading at $55.42, up 2.55% over the past 24 hours. The modest rebound comes as traders weigh a bearish TD Sequential signal against signs that derivatives activity and on-chain metrics may be finding a floor.

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HYPE Price Faces Heavy Resistance

On the daily TradingView chart, HYPE is trading below its 50-day moving average of $63.13, a level that is acting as dynamic resistance. At the same time, the token remains well above its 200-day moving average of $46.23, indicating that the broader trend has not fully broken down.

Momentum remains cautious. The Relative Strength Index (RSI) has risen to 42.64 from near-oversold levels, while still staying below the neutral 50 mark. That suggests buyers have begun returning to the market, though they have not yet taken control.

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TD Sequential Adds Bearish Pressure

According to market analyst Ali Charts, a new technical alert appeared on X after Hyperliquid reached a key resistance level and the TD Sequential flashed a sell signal. The analyst said, “$50 becomes the next downside target” if sellers continue defending the resistance.

The signal also matches HYPE’s current technical setup. Even with the recent uptick in price, the asset remains below a key moving average, leaving traders focused on whether the market can reclaim nearby resistance rather than build on the rebound.

SELL SIGNAL AT RESISTANCE Hyperliquid $HYPE has reached a key resistance trendline just as the TD Sequential flashes a sell signal. If sellers step in here, $50 becomes the next downside target. pic.twitter.com/e3iHaCCE6m — Ali Charts (@alicharts) August 4, 2026

SELL SIGNAL AT RESISTANCE Hyperliquid $HYPE has reached a key resistance trendline just as the TD Sequential flashes a sell signal. If sellers step in here, $50 becomes the next downside target. pic.twitter.com/e3iHaCCE6m

On-Chain and Derivatives Signals Are Mixed

On-chain activity tied 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. However, both metrics appear to be stabilizing rather than continuing their previous downtrend.

Meanwhile, CoinGlass data shows that open interest has declined alongside the price correction. That does not necessarily point to aggressive new short positions; instead, it suggests that many leveraged positions may already have been flushed out, which can leave the market more sensitive to fresh trading activity.

What Traders Should Watch Next

HYPE is at a critical juncture. Technical indicators continue to show overhead resistance, while derivatives positioning and on-chain activity indicate that selling pressure may be easing after weeks of deleveraging.

The current recovery will likely depend on whether buyers can reclaim the $61.98-$63.13 resistance zone. Two scenarios remain in focus: a bullish continuation if resistance is recovered, or a bearish move toward $50 if selling pressure returns.

For now, traders are watching whether recent stabilization in TVL, active addresses, and open interest can translate into a stronger spot-market response. That makes the next test of resistance especially important for confirming whether the rebound has enough follow-through to hold.

Investors should remain cautious and monitor ongoing developments in the crypto market.

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This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.