Upside Still Rolling For HYPE And Zcash—But Danger Zones Are Getting Closer

bitcoinistPublished on 2026-05-22Last updated on 2026-05-22

Abstract

Hype (HYPE) reached a new all-time high near $63, and Zcash (ZEC) approached its record levels, with monthly gains of 45% and 108% respectively. Both have climbed in market cap rankings. However, following pullbacks, analyst Ali Martinez warns of rising downside risk. For HYPE, technical indicators like the RSI and TD Sequential show a pattern similar to past corrections. Martinez cautions that price rejection from current levels could lead to a retracement toward $40. Zcash faces resistance in the $700-$730 area, the same zone that caused a major rejection in November. A weekly TD Sequential sell signal is emerging, with stretched momentum indicators. If confirmed, corrections could target $500 initially, and potentially $380. While both assets remain in strong uptrends, current conditions suggest increasing risk of a significant pullback.

Hyperliquid’s native token, HYPE, pushed to a fresh all-time high near $63 on Thursday, while Zcash (ZEC) also continued working its way toward its current record levels.

HYPE’s momentum has been especially strong over the longer view compared to its market peers, recording about a 45% gain on the monthly time frame. Zcash has been running even hotter, with a 108% rise over the same period.

That performance has carried both assets closer to the top of the overall cryptocurrency rankings by market capitalization. HYPE has climbed to the 11th largest position, while ZEC is in 13th place.

Downside Odds Rising For HYPE

NewsBTC had earlier noted that HYPE briefly surged to $62.80, marking a new record peak for the token. Zcash, meanwhile, climbed toward a double top over the past 24 hours near the $690 area. By Thursday evening, both coins had pulled back from these key levels: HYPE retraced to about $57, and ZEC slipped to around $659.

The daily chart shows HYPE’s price uptrend. Source: HYPEUSDT on TradingView.com

Despite the pullback, the more cautious note came from technical analyst Ali Martinez, who warned that both tokens may be entering areas where the probability of downside increases.

In a post on X (formerly Twitter), Martinez emphasized that when trades become crowded and sentiment turns overwhelmingly bullish, investors should watch for signs of exhaustion—not just continue assuming momentum will carry indefinitely.

According to Martinez, the last two TD Sequential sell signals on HYPE occurred when the Relative Strength Index (RSI) and the Chande Momentum Oscillator were also at overheated readings. Those setups, he noted, were followed by meaningful corrections.

Now, he says, a very similar pattern is unfolding. For the near-term, Martinez cautioned that if price rejection shows up from that zone, a retracement toward roughly $40 becomes increasingly likely.

Zcash Could Retrace Toward $380

Zcash’s setup, in Martinez’s view, looks structurally similar. He said ZEC has surged more than 40% over the past week and is now moving into the same general resistance area that previously produced a major rejection back in November, around the $700–$730 range.

The analyst argued that this situation becomes more consequential because the sell signal is emerging on the weekly chart, not just in the short term. He also noted that the prior move—from the bottom of the channel to the top—had been anticipated by a weekly TD buy signal, which makes this flip in momentum more noteworthy.

In addition, he said momentum indicators are starting to look stretched again, and if the weekly sell signal confirms, the correction could end up being larger than traders might expect from a typical pullback.

Martinez outlined potential downside areas for Zcash if the bearish signal develops. He named an initial downside zone around $500, followed by a deeper retracement target near $380.

His overall conclusion is that while both HYPE and Zcash remain in strong uptrends, the market conditions around current levels suggest risk is rising.

Featured image created with OpenArt, chart from TradingView.com

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Related Questions

QWhat are the current all-time high price levels for HYPE and Zcash as mentioned in the article?

AAccording to the article, Hyperliquid's native token HYPE pushed to a fresh all-time high near $63, while Zcash was working its way toward its current record levels, with a recent climb toward the $690 area.

QAccording to technical analyst Ali Martinez, what technical indicators signaled potential corrections for HYPE?

AAli Martinez noted that the last two TD Sequential sell signals for HYPE occurred when the Relative Strength Index (RSI) and the Chande Momentum Oscillator were at overheated readings, which were followed by meaningful corrections.

QWhat is the key resistance zone identified for Zcash, and why is it significant?

AThe key resistance zone for Zcash is the $700–$730 range. This area is significant because it previously produced a major price rejection back in November.

QWhat potential downside targets did Ali Martinez outline for Zcash if the bearish signal develops?

AAli Martinez outlined potential downside targets of around $500 as an initial zone, followed by a deeper retracement target near $380 for Zcash.

QWhat is the main caution or warning provided by analyst Ali Martinez regarding HYPE and Zcash in the article?

AThe main caution from Ali Martinez is that both HYPE and Zcash may be entering areas where the probability of a downside price move increases. He warns that when trades become crowded and sentiment is overwhelmingly bullish, investors should watch for signs of exhaustion rather than assuming momentum will continue indefinitely.

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How to Buy HYPE

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7.8k Total ViewsPublished 2024.03.29Updated 2026.06.02

How to Buy HYPE

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