HYPE Hits Record Highs: Why Analysts Warn of a Dangerous Setup

Hyperliquid’s HYPE token has dominated the market recently, delivering a staggering 130% return year-to-date and surging 55% in just a single week. However, despite the bullish price action, technical experts are beginning to sound the alarm as the asset approaches a "make-or-break" resistance zone.

Technical Indicators Signal Overheating

Prominent crypto analyst Ali Martinez is warning investors that the upward momentum for HYPE may be reaching an exhaustion point. Martinez highlights a "dangerous setup" forming around the $60 mark, where multiple technical indicators are flashing sell signals simultaneously. Specifically, the TD Sequential Combo 13 is active, and both the Relative Strength Index (RSI) and the Chande Momentum Oscillator have reached historically elevated levels, suggesting the asset is significantly overbought.

The Risk of a 33% Retracement

History suggests caution is warranted; the last two times these specific technical conditions met, HYPE experienced significant price corrections. While there is room for one final "exhaustion run" toward $59 or $60, Martinez suggests this is likely the end of the current leg up rather than the start of a new one. If the $60 resistance holds, analysts project a potential retracement toward the $40 level, representing a 33% pullback from current highs.

Broader Market Context

HYPE isn't the only asset facing a critical test. ZCash (ZEC) is exhibiting a remarkably similar technical structure following a 40% weekly surge. Both assets are currently favorite holdings of BitMEX founder Arthur Hayes, who maintains high long-term targets for both. As HYPE consolidates just under $56, the coming sessions will determine if the token can defy technical gravity or if a major market "shake-out" is imminent.