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- zkSync (ZK) price fell by 13.15% in the past 2 days.
- ZK in circulation is just 17.50% (3.7 Billion) of max supply (21 Billion).
The chart shows ZK forming a bottom near the $0.140 hurdle, reflecting bullishness. After gaining slowly and steadily, it surpassed the 20-day EMA. At press time, it was at the pullback territory.
At the time of writing, ZK was trading at $0.177 after falling from the $1.71 mark intraday. The market capitalization was $653.92 Million and the 24-hour trading volume was $123.88 Million.
ZK Price Technical Analysis Over 4-H Timeframe
COINBASE: ZK/USD 4-H Chart By TradingView
In a 4-H time frame, the zkSync price has been rising after taking support on a major trendline. The price defended this trendline multiple times and showed bullish momentum.
At press time, the price dropped to the trendline and took support on the 200-day EMA. In case of a bullish candlestick on the trendline, buyers might invest.
On the other hand, if the price slips below the trendline, buyers may lose steam, spurring selling pressure. Below the trendline, it may be difficult for the buyers to bounce back.
Are Buyers Trapped in a ‘Three White Soldiers’ Pattern?
Mid-July, ZK produced a ‘three white soldiers’ pattern and the buyers seem to be trapped in that pattern. Because, the candlestick after the ‘three white shoulders’ engulfed the 2 previous candlesticks.
If its indeed a trap, strong selling pressure can be anticipated. However, the chart structure displayed that the sellers were struggling to drag the price below the 20-day EMA at press time.
If the asset goes below the 20-day EMA, sellers may take over. The last hope for the buyers would be to defend the $0.145 mark. ZK dropped 13.15% in the past 2 days, but this could turn into a pullback if buyers bounce back.
Alternatively, if the zkSync price manages to defend the 20-day EMA, buyers may remain in the game. The formation of a bullish candlestick on the 20-day EMA may invite buyers for a bullish momentum.
How Long Before Buyers’ Domination Ends?
$ZK As long as the price remains above our support level, there's nothing to worry about. #zkSync #ZK #BTC https://t.co/mUbCU0aNN0 pic.twitter.com/jKKBiZohzo
— Professor (@rabaprofessor) July 24, 2024
A source on X claimed that, as long as the price remains above the major support level of $0.170, buyers need not worry. However, things might not look good if the price falls below this level.
ZK showed a round bottom recovery and is currently at the pullback zone. Sellers could swoop down on the buyers who are seemingly trapped in a ‘three white soldiers’. But If the price pulls back, the buyers will dominate.
The bullish trend in ZK crypto may get disturbed near the $0.200 and $0.230 levels. The price might take support at $0.166 and $0.140 levels.
Disclaimer
This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.
