Hyperliquid’s HYPE token has jumped 55% in just one week and gained over 130% so far this year. But well-known crypto analyst Ali Martinez (@alicharts) is warning that the asset is now hitting a key resistance zone, with several technical indicators flashing sell signals at the same time. He says this setup could lead to a drop toward $40 if the current momentum fades.
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In a post on X, Martinez laid out the technical picture clearly. Three signals are appearing together on HYPE: the TD Sequential Combo 13 sell signal is already active, a standard green 9 sell signal could confirm as soon as the next trading session, and both the Relative Strength Index (RSI) and the Chande Momentum Oscillator are at historically high—or overheated—levels, according to his analysis.
HYPE’s price has been trending upward after a surge in institutional adoption, as shown on the daily chart. Source: HYPEUSD on Tradingview
Why This Setup Worries Martinez
The importance of this current setup comes from past patterns. According to Martinez’s post, the last two times TD Sequential sell signals appeared on HYPE while the RSI and Chande Momentum Oscillator were also overheated, both cases led to major corrections. He’s not pointing to single indicators—he’s highlighting a specific combination of signals that has already proven significant twice in HYPE’s relatively short price history.
HYPE’s price is entering a dangerous area if it can’t keep up its current bullish momentum, as seen on the TD Sequential Indicator. Source: Ali Martinez on X
The analyst does leave room for one final push before any reversal happens. HYPE could still rise toward $59 or even slightly above $60 before momentum fades, he notes—but he sees that move as a potential exhaustion run rather than the start of a new upward trend. If the price gets rejected from the $59–$60 area, a drop toward roughly $40 becomes more likely, based on his analysis. That would be a pullback of about 33% from the upper resistance zone—significant, but in line with the corrections that followed the previous two sell signal setups he mentions.
ZCash Showing a Similar Warning
Martinez also pointed to ZCash in the same post, noting a similar technical pattern after a 40%-plus weekly surge. ZCash is approaching the same resistance zone that caused a major rejection in November—around the $700–$730 area—with the TD Sequential now showing a sell signal on the weekly chart. Because the signal appears on the weekly timeframe, Martinez warns the potential correction could be much larger, with first downside support near $500 and a deeper drop possibly reaching $380.
The parallel between the two assets is notable since BitMEX founder Arthur Hayes has publicly shared large positions in both HYPE and ZCash—with a $150 target for HYPE and a $10,000 long-term target for ZCash. This makes the current resistance zone a critical test for two of his highest-confidence bets at the same time.
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As of this writing, HYPE is trading around $56, holding just below the critical $59–$60 resistance zone that Martinez has identified as the make-or-break level for the near-term price direction.
Cover image from Perplexity, HYPEUSD Chart from Tradingview
Frequently Asked Questions
Here is a list of FAQs about HYPEs 130 surge and the analysts warning around the 60 mark written in a natural tone with clear simple answers
BeginnerLevel Questions
1 What does HYPE is up 130 mean
It means the price of the cryptocurrency or token called HYPE has increased by 130 since the start of 2026 If it was worth 10 its now worth roughly 23
2 Why is everyone talking about the 60 mark
A top analyst noticed that HYPEs price is forming a specific pattern near 60 In the past similar patterns have led to the price dropping sharply
3 Is a 130 gain a good thing or a bad thing
A 130 gain is great for people who bought early But it can be risky because big fast gains often attract sellers who want to lock in profits which can cause the price to fall
4 What is a dangerous pattern in simple terms
Think of it like a rollercoaster A dangerous pattern means the chart shows the price hit a high dropped tried to hit that high again and failed This often signals the ride is about to go down
5 Should I buy HYPE right now because its going up
Not necessarily Just because its up doesnt mean it will keep going up The analysts warning suggests theres a high chance of a drop near 60 Its safer to wait and see what happens
IntermediateLevel Questions
6 What specific pattern is the analyst warning about
The analyst is likely referring to a double top or a bearish divergence on the daily chart A double top looks like two mountain peaks at the same price level followed by a dip This is a classic sell signal
7 Why is 60 such a critical level for HYPE
60 is a psychological resistance level Its a round number that traders watch closely If HYPE cant break and stay above 60 it means buyers are exhausted and sellers are taking control If it does break it could rally further