Hyperliquid's HYPE token is drawing attention after popular crypto analyst Ali Martinez observed a potential head-and-shoulders top pattern forming on its price chart. A 22% correction is possible if the pattern is confirmed, which would require a 12-hour session close below the $76-$78 neckline, Martinez noted.
Price Action and Pattern Details
At the time of writing, Hyperliquid's weekly trend was bullish. However, the altcoin has failed to push to new highs past $98 in recent weeks, and its dip to $75.17 suggested a retracement might be in play.
The bounce to $97 on Thursday, 29th October, was followed by a 14.19% setback over the following six days. That price spike resulted from the Intercontinental Exchange (ICE) announcement that it would partner with Hyperliquid to introduce a regulated perpetual futures market in the United States.
If the head-and-shoulders pattern is confirmed, Martinez suggested the next price targets would be $62 and $59.
Liquidity and Market Sentiment
Recent price swings from $75 to $98-$99 have built up sizeable pools of liquidity on either side. Key liquidation clusters have been swept, with the latest being dense short liquidations at $95.5. The next pocket of liquidity sat at $74.
The retracement argument reinforced a bearish price bias. The altcoin has failed to push to new highs, and the recent liquidity sweep of the $97 region and subsequent correction strengthened the idea that bulls may not be in control of the market. Sellers showed clear intent with recent losses and could succeed in driving a price correction below $75.
As Martinez suggested, a pullback to $59-$62 may be possible, which would still be a healthy retracement within the weekly bullish trend.
Context of Outperformance
Bitwise CIO Matt Hougan recently highlighted the price performance of top crypto assets in 2026. Among the top 20 crypto assets, he found that the median is down by 15%, while the mean is up 14%. Outliers like Hyperliquid, NEAR Protocol, and ZCash have comfortably outperformed the mean.
Market maker Cumberland warned that Hyperliquid's order book is fully transparent, and trades can be tracked.
