Hyperliquid & Zcash: Parabolic Rallies at Risk? Analysts Warn of Pullback

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Can Hyperliquid and Zcash hold their parabolic rallies?

Hyperliquid and Zcash are currently performing well among alternative cryptocurrencies, but experts caution that strong positive feelings and overextended market signals could lead to a price decrease.

Summary

  • Hyperliquid trades near $59 after hitting a $62.18 all-time high on May 21.
  • Zcash is up over 100% in 30 days, but traders now watch the $700 resistance zone.
  • Analysts warn crowded sentiment and overbought signals may raise pullback risk for both assets.

On May 22nd, Hyperliquid was trading around $59.11, showing strong gains of 29.68% in the last week and 45.77% over the past month. It hit a record high of $62.18 on May 21st, with $1.42 billion worth of the token traded in the last 24 hours.

Despite recent market downturns, HYPE remains one of the leading large-cap cryptocurrencies. Reports indicate its price surpassed $60 on May 21, fueled by interest from exchange-traded funds (ETFs) and speculation within the decentralized finance (DeFi) community.

According to Ali Martinez, Hyperliquid (HYPE) is getting a lot of attention online. He noted that the price of HYPE has hit a record high, and so have the number of times it’s been mentioned on social media.

Hyperliquid’s token, $HYPE, has hit a record high price, and people are definitely talking about it. Social media mentions of the token have also skyrocketed to an all-time high.

— Ali Charts (@alicharts) May 22, 2026

Getting a lot of attention can help a trade gain traction, but it also increases the potential for problems. Traders often look for signals that new buyers are coming in when the price is already high, rather than at the beginning of the price increase, which suggests the trade might be overextended.

HYPE traders watch the $60 zone

According to Ali Martinez, HYPE is nearing a significant price level where it may struggle to rise further, and several technical indicators suggest it could be losing momentum. He notes a sell signal from the TD Sequential Combo 13, an overbought Relative Strength Index (RSI), and high readings on the Chande Momentum Oscillator, all hinting at a potential pullback.

The analyst believes HYPE’s price could rise to $59 or even a little over $60 before losing steam. If the price can’t break through that level, it might then fall to around $40. However, this is just a potential scenario, not a guaranteed prediction.

Recent reports echoed a similar warning. Even after the price surpassed $60, crypto.news pointed out that the price could still fluctuate wildly in the short term, although overall trends suggested continued support for the market.

Recent investment activity includes new digital assets. 21Shares introduced the first U.S. exchange-traded funds linked to HYPE, offering both standard and leveraged options, including one that allows users to earn rewards through staking. Hyperliquid, the platform behind HYPE, processes around $8 billion in trades daily and uses over 95% of its fees to repurchase HYPE tokens.

Bitwise will use 10% of the fees earned from its Hyperliquid ETF (BHYP) to purchase and hold HYPE tokens, linking the ETF’s fees to the demand for HYPE.

Zcash price rally faces $700 test

On May 22nd, Zcash was trading around $645.63. While the price dipped 2.76% over the last day, it has seen significant gains recently, increasing by 20.35% over the past week and a substantial 100.43% over the last month. Trading activity totaled approximately $690 million in the last 24 hours, giving the cryptocurrency a market capitalization of around $10.8 billion.

ZEC‘s price recently surged, briefly approaching $700 before easing back slightly. Over the past 24 hours, it traded between $645.73 and $682.56, and traders are now watching to see if buyers can push the price back up to its recent high.

According to a recent report from crypto.news, the price of Zcash (ZEC) is approaching $700 after breaking out of a bullish pattern. The price increase is likely due to positive regulatory developments, growing interest from institutional investors, and strengthening technical indicators.

Ardi noted on X that the recent move back toward $680 wasn’t primarily fueled by individual retail investors. He observed that retail trading volume remained steady, while the price increase was driven by medium-sized transactions, and larger investments were beginning to pick up after the recent dip.

Looking at Zcash (ZEC) and its recent rise back to $680, the increase doesn’t seem to be fueled by typical individual investors. While individual participation has stayed relatively consistent, most of the buying pressure has come from medium-sized transactions. And…

— Ardi (@ArdiNSC) May 22, 2026

ZEC traders weigh breakout and reversal risk

According to Ali Charts, Zcash has risen over 40% in the past week and is approaching a price range of $700 to $730 where it previously faced significant resistance in November. He also notes that the TD Sequential indicator is currently suggesting a potential sell-off on the weekly chart.

The analyst believes the current weekly trading pattern is important because a potential market decline could be significant, going beyond a typical short-term dip. He predicts initial support around $500, with a more substantial drop potentially reaching $380.

The recent warning aligns with existing concerns in the market. A recent article from crypto.news noted traders were already anticipating a potential price of $750 for ZEC, while also considering the risks associated with leveraged trading. The report highlighted worries that low demand for direct purchases and a lot of activity in perpetual futures contracts could cause ZEC’s price to fall quickly if buying interest decreases.

A new report indicates that Zcash (ZEC) has seen a significant monthly increase of over 70%, and a technical indicator called a ‘golden cross’ suggests this positive trend may continue. This rise is likely due to Multicoin Capital publicly revealing they’ve been buying ZEC, combined with growing interest in privacy-focused digital assets.

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2026-05-22 13:53