ZKsync (ZK/USDT) Faces the Dynamic Resistance at $0.1327
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After a recent downtrend, ZKsync has been shifting upward, with a sign of a potential breakout above the dynamic 20-day moving average. The recent price movement suggests bullish momentum is building up. However, the relatively stable Bollinger bands suggest low volatility and a period of consolidation between defined ranges. On the other hand, the Stochastic RSI suggests a potential bullish reversal for ZKsync against the USDT in the near term.
Currently, ZK/USDT is trading at $0.1321, with a 9.72% positive trade above the previous session. At this point, a break above the mid-band with more volume support will advance the price past the upper band. However, caution is suggested with this market condition, as the consolidation period may be extended if the price fails to pierce through the dynamic band.
Technical Indicator
Major Resistance Levels: $0.1327, $0.1400, and $0.1498
Major Support Levels: $0.1156, $0.1100, and $0.1000
ZKsync Technical Analysis
ZKsync against the Tether on the daily timeframe is improving to the North. However, the pair is facing a dynamic resistance at the $0.1327. The Bollinger bands on this chart suggest low volatility and caution. Yet, a break above the current resistance may mean the end of unclear market direction and indicate a further uptrend. Conversely, if the condition above fails, the pair may consolidate or see a short-term reversal.
The Stochastic oscillator at the bottom of the chart suggests a continuation of the current bullish formation. However, more confirmation is needed, as the lines are still positioned in the oversold region. For a clearer signal, the lines must improve above the oversold region; otherwise, an extension to the right may signal another tight-range consolidation period.
ZK/USDT Analysis: What to Expect
The analysis of ZK/USDT on a 4-hour timeframe shows an upward movement with the price above the upper band, which signifies an overbought condition and a surge in buying momentum in the short term. However, the Stochastic RSI for this chart also prescribes an overbought condition and demands caution, as the price may need to cool off before further uptrend.
To this end, if the buying pressure is sustained above the $0.1320 level, it would signal further bullish movement. Conversely, traders should watch for a potential retracement due to take profit conditions.
As suggested by Stochastic RSI, a minor pullback or sideways movement is likely to be seen very soon.
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