In today’s crypto news, popular crypto analyst Ali Martinez believes Hyperliquid’s explosive rally may finally be running out of steam. In his latest analysis, he postulates that HYPE has reached a market top after one of the strongest runs in the cryptocurrency market this year. Martinez argues that several technical indicators that previously signaled major corrections are once again flashing warning signs.
Ali Martinez Says HYPE Has Reached a Market Top
Martinez first raised concerns about Hyperliquid several days ago when HYPE was approaching new highs. At the time, he noted that the token was entering a critical resistance zone. Multiple momentum indicators suggested the rally was becoming overheated.
Among the signals he highlighted were a TD Sequential Combo 13 sell signal, an overbought Relative Strength Index (RSI), and a Chande Momentum Oscillator that had reached historically elevated levels. According to Martinez, previous instances where those indicators aligned led to significant pullbacks in HYPE’s price.
At the time, the analyst suggested that HYPE could still push toward $59 or even above $60 before momentum faded. That prediction ultimately played out as Hyperliquid rallied beyond both levels and reached a new all-time high at $64.59.
However, Martinez has now released a follow-up chart carrying a much stronger message. The chart shows a completed TD Sequential 9 sell signal on the three-day timeframe, prompting the analyst to state that Hyperliquid has likely reached a market top.
Why Traders Should Watch the TD Sequential Signal
Ali’s thesis stands in contrast to the overwhelmingly bullish sentiment that has surrounded HYPE in recent weeks. Traders have largely focused on Hyperliquid’s growing dominance in decentralized perpetual futures and strong protocol revenue. Martinez, however, believes technical conditions are now suggesting caution.
The TD Sequential indicator is widely used by traders to identify trend exhaustion and potential reversal zones. The system attempts to detect when buying or selling pressure has become stretched to unsustainable levels.
Martinez pointed out that the last two major TD Sequential sell signals on HYPE appeared when both the RSI and Chande Momentum Oscillator were similarly overheated. In both cases, the token experienced meaningful corrections shortly afterward.
The current setup closely resembles those previous signals. The emergence of the TD Sequential 9 sell signal especially suggests that bullish momentum may be slowing even if the broader uptrend remains intact. While no indicator is perfect, the similarity has attracted attention since HYPE has already delivered extraordinary gains over a relatively short period.
HYPE Has Been One of Crypto’s Biggest Winners
Few tokens have matched Hyperliquid’s performance this year. The token surged more than 130% since the beginning of 2026 and gained roughly 53% over the past month alone. The rally transformed Hyperliquid into one of the largest and most talked-about projects in the crypto industry. Its market capitalization currently sits at $15.81 billion, while daily trading volume is at $1 billion.
Institutional demand has also strengthened considerably. Recent on-chain data showed that clients of 21Shares and Bitwise purchased roughly $68 million worth of HYPE through exchange-traded products over the course of a single week.
Despite the signal’s bearish implications, Martinez’s analysis does not necessarily mean Hyperliquid’s uptrend has ended. Market tops can often lead to periods of consolidation, profit-taking, or temporary pullbacks before a broader trend resumes. After such a rapid rally, many traders would consider a cooldown period healthy rather than destructive.
Hence, Martinez believes traders should be cautious about chasing momentum at current levels. With multiple technical indicators now pointing toward exhaustion, the risk-reward profile may look very different than it did earlier in the rally.
Temitope Olajide
