Why did ZK crypto’s price climb by 162% within 48 hours?
Traders chase the next privacy breakout as ZKsync mirrors Dash’s momentum but faces technical barriers near $0.065.
Key Takeaways
Why is ZKSync rallying?
The demand for privacy and the rising popularity of ZCash have spurred investor interest in alternatives such as Dash and ZKSync.
How much higher can this move go?
Despite the triple-digit percentage gains over the weekend, the daily timeframe showed a bearish structure- ZKSync investors need to be cautious of profit-taking activity.
The popularity of ZCash [ZEC] meant that the market is looking for the next privacy token that will go on a bullish run.
Dash [DASH] saw bullish momentum recently, and ZKsync [ZK] could be next. It has zero-knowledge proofs (ZKPs) that allow transaction validation, without revealing sensitive data.
It operates as a Layer 2 scaling solution, combining efficiency and privacy—factors that likely fueled its 162% weekend rally from $0.0286 to $0.0753 on the 2nd of November.
Is this ZK crypto rally sustainable?
On the 1-day chart, ZK still retained a bearish market structure. The swing move from $0.065 to $0.02815 in October was almost wholly retraced by the 2nd of November, but the structure was not broken.
A daily trading session close above the $0.065 swing high is needed to shift the swing structure bullishly. Swing traders who like to wait for confirmation of price trends can wait for this level to be breached before buying.
The OBV shot higher due to the extremely high trading volume over the past 48 hours compared to recent months. This indicated extremely high demand and was a sign that the rally could go much higher if the inflows persist.
Meanwhile, the Money Flow Index (MFI) reached overbought territory.
While not a guarantee of correction, it suggests traders should monitor for short-term consolidation or a pullback forming a higher low.
Liquidation data hints at key support zones
The Liquidation Heatmap showed the short liquidations at $0.036 and $0.04 likely fueled the rally higher.
As of press time, the price was around $0.04. This area is showing significant long liquidation clusters that have formed over the last 48 hours.
This region could present a buy-on-dip opportunity. However, conservative traders might prefer to wait for a confirmed breakout above $0.065 before re-entering the market.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
