A single-week surge of 55% has pushed the HYPE token into a danger zone. Analyst Ali Martinez warns the cryptocurrency is approaching a resistance band between $59 and $60, where several technical indicators are all flashing sell signals at once. The token has delivered more than 130% year-to-date, but traders are watching closely for a possible 33% correction back toward $40.
The Technical Picture
HYPE currently trades around $56, consolidating just below the $59-$60 resistance. Martinez points out that the TD Sequential indicator has triggered a Combo 13 sell signal, and a standard green 9 sell signal could confirm as early as the next trading session. Both the Relative Strength Index and the Chande Momentum Oscillator sit at historically elevated — or overheated — levels.
The last two times a TD Sequential sell appeared on HYPE while both momentum oscillators were simultaneously that high, the token suffered significant corrections. Martinez isn't ruling out a short push above $59 or even slightly past $60 before momentum fades, calling that move a potential exhaustion run. If the rejection holds, he sees a retracement toward roughly $40 — a drop of about 33% from current prices.
ZCash Follows a Similar Pattern
It's not just HYPE. ZCash (ZEC) has also put together a 40%-plus weekly rally and now approaches resistance at $700-$730. Martinez notes a TD Sequential sell signal on ZEC's weekly chart with a similar overheated momentum structure. He warns the correction could reach $500 or, in a deeper scenario, $380.
Hayes's Bullish Bet
BitMEX co-founder Arthur Hayes has publicly disclosed large positions in both HYPE and ZCash. He's set a $150 target for HYPE and a $10,000 long-term target for ZCash. Those numbers stand in stark contrast to Martinez's near-term bearish calls, leaving traders to decide which signal to trust.
For now, HYPE's next few sessions will determine whether the token can break through $59-$60 and invalidate the sell signals, or whether the overheated readings finally trigger the pullback that past patterns suggest is coming.
