Zksync (ZK/USDT) Seeks Support Near $0.1330 Dynamic Level
Estimated Reading Time: 3 minutes
Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you are unlikely to be protected if something goes wrong. Take 2 minutes to learn more
ZK/USDT has shown strong signs of potential retracement to the immediate support level Sequel to breaking above $0.1479, the current high. This suggests the pair is currently facing strong selling pressure, which can be attributed to the take-profit actions of bullish traders. However, a 4% decline in price indicates a short retracement as the current market sentiment is still bullish.
The market trading volume might have diminished, and the Stochastic RSI suggests a moderately overbought condition. Moreover, the current selling pressure may meet with strong bullish momentum when buyers resume activities.
At this point, a cautious trade must be taken because the price might consolidate between the current level before another attempt to move upward.
Currently, Zksync trades at $0.1392, and any attempt to break below the $0.1330 level will result in further downtrends.
Technical Analysis
Major Resistance Levels: $0.1479, $0.1600, and $0.1800
Major Support Levels: $0.1330, $0.1182, and $0.1000
ZKsync Technical Analysis
The analysis of Zksync against the Tether on a daily timeframe shows that the pair has faced strong resistance after a recent bullish rally. However, the closeness of the Bollinger band and the low market volume indicate the current short position lacks strong conviction. Therefore, traders should be expecting a pullback at the $0.1330 level.
In the near term, price action around the dynamic mid-band and a spike in volume will determine whether the price will slice through the level or meet strong support provided there is enough buying pressure at the same level.
On the other hand, the lines on the stochastic oscillator suggest the pair is heading into a neutral zone; the 50-mark level will cement the fate of the pair.
ZK/USDT Analysis: What is Next?
On the 4-hour timeframe, ZK/USDT operates at $0.1392 slightly above the lower band; this signifies the pair is in an oversold condition and a potential may be on the horizon.
On the other hand, the oscillator beneath the chart also suggests the pair is in an oversold condition, as both lines are deep into the region. This suggests the selling pressure in the market is waning and the pair may resume to the $0.1450 or even $0.1500 level.
You can purchase crypto coins here. Buy LBlock
