Hyperliquid’s HYPE token has surged 55% in a single week and delivered greater than 130% in year-to-date returns — however outstanding crypto analyst Ali Martinez (@alicharts) is warning that the asset is now approaching a important resistance zone with a number of technical indicators flashing promote indicators concurrently, a setup he says might set off a retracement towards $40 if momentum fades at present ranges.
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In a put up on X, Martinez laid out the technical case with precision. Three converging indicators are showing on HYPE on the identical time: the TD Sequential Combo 13 promote sign is already energetic, a typical inexperienced 9 promote sign might verify as early as the following session, and each the Relative Energy Index (RSI) and the Chande Momentum Oscillator are sitting at traditionally elevated — or overheated — ranges, per the analyst’s evaluation.
HYPE's worth developments to the upside following a surge in institutional adoption, as seen on the day by day chart. Supply: HYPEUSD on Tradingview
Why The Setup Considerations Martinez
The importance of the present configuration lies in precedent. In response to Martinez’s put up, the final two events when TD Sequential promote indicators appeared on HYPE whereas the RSI and Chande Momentum Oscillator had been concurrently at overheated ranges, each situations led to important corrections. The analyst isn’t pointing to remoted indicators — he’s pointing to a selected mixture of indicators that has already confirmed consequential twice in HYPE’s comparatively brief worth historical past.
HYPE's worth coming into a harmful space if the asset cannot maintain its present bullish momentum, as seen on the TD Sequential Indicator. Supply: Ali Martinez on X
The analyst does go away room for one remaining push earlier than any reversal materializes. HYPE might nonetheless push towards $59 and even barely above $60 earlier than momentum fades, he notes — however frames that transfer as a possible exhaustion run quite than the start of a brand new leg greater. If rejection comes from the $59–$60 space, a retracement towards roughly $40 turns into more and more possible, per his evaluation.
That might symbolize a pullback of roughly 33% from the higher resistance zone — significant, however in line with the corrections that adopted the earlier two promote sign setups he references.
ZCash Flashing A Related Warning
Martinez additionally flagged ZCash in the identical put up, noting a comparable technical construction after a 40%-plus weekly surge. ZCash is approaching the identical resistance zone that triggered a serious rejection in November — across the $700–$730 space — with the TD Sequential now flashing a promote sign on the weekly chart.
As a result of the sign seems on the weekly timeframe, Martinez warns the potential correction might be considerably bigger, with first draw back help close to $500 and a deeper retracement doubtlessly reaching $380.
The parallel between the 2 belongings is notable on condition that BitMEX founder Arthur Hayes has publicly disclosed giant positions in each HYPE and ZCash — with a $150 HYPE goal and a $10,000 long-term ZCash goal — making the present resistance zone a important take a look at of two of his highest-conviction calls concurrently.
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As of this writing, HYPE trades at round $56, consolidating slightly below the important $59–$60 resistance zone that Martinez has recognized because the make-or-break stage for the near-term worth trajectory.
Cowl picture from Perplexity, HYPEUSD Chart from Tradingview
