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 crucial resistance zone with a number of technical indicators flashing promote alerts concurrently, a setup he says might set off a retracement towards $40 if momentum fades at present ranges.
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In a submit on X, Martinez laid out the technical case with precision. Three converging alerts are showing on HYPE on the similar time: the TD Sequential Combo 13 promote sign is already energetic, an ordinary inexperienced 9 promote sign might verify as early as the subsequent session, and each the Relative Power Index (RSI) and the Chande Momentum Oscillator are sitting at traditionally elevated — or overheated — ranges, per the analyst’s evaluation.
HYPE's value 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 Issues Martinez
The importance of the present configuration lies in precedent. In line with Martinez’s submit, the final two events when TD Sequential promote alerts appeared on HYPE whereas the RSI and Chande Momentum Oscillator have been concurrently at overheated ranges, each cases led to vital corrections. The analyst isn’t pointing to remoted indicators — he’s pointing to a particular mixture of alerts that has already confirmed consequential twice in HYPE’s comparatively quick value historical past.
HYPE's value getting 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 ultimate 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 relatively than the start of a brand new leg larger. If rejection comes from the $59–$60 space, a retracement towards roughly $40 turns into more and more probably, per his evaluation.
That might characterize a pullback of roughly 33% from the higher resistance zone — significant, however in step 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 submit, 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 may very well be considerably bigger, with first draw back assist close to $500 and a deeper retracement doubtlessly reaching $380.
The parallel between the 2 belongings is notable provided that BitMEX founder Arthur Hayes has publicly disclosed massive 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 crucial 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 crucial $59–$60 resistance zone that Martinez has recognized because the make-or-break degree for the near-term value trajectory.
Cowl picture from Perplexity, HYPEUSD Chart from Tradingview
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