Zano crypto crosses $10 mark, but can struggle to reach $15.5
The low volume surge was a warning sign that the move might be unsustainable.
- ZANO crypto has gained nearly 100% from October.
- The low trading volume in December and weak capital inflows since October were a warning signal.
Zano [ZANO] crypto set a new all-time high in late August, above the previous one at $4.18 in October 2021.
Since then, the token has marched higher, setting a new high at $13.68 on the 10th of December on the MEXC exchange.
After setting this new high, ZANO crypto has retraced by nearly 9.3%. Yet, the bullish structure remained intact.
A set of Fibonacci retracement levels were plotted, but since the impulse move might not have ended, traders have to be on their toes.
Zano has been trading since 2020. The privacy-centric blockchain ecosystem has survived the bear market and put up strong gains in recent months. It still stood at a relatively small market cap of $167.57 million at press time.
Warning signs from the OBV?
ZANO crypto has a strongly bullish structure and the daily RSI has maintained above the 80 mark since Sunday the 8th of December. This showed intense upward momentum.
The trading volume has also been above average since the 5th of December, a positive sign.
Yet, the OBV was unable to break the October highs and set new ones. Meanwhile, the price is up by almost 100%. This warranted caution from traders. It would be prudent for investors to book profits.
The low volume surge was a warning sign that the move might be unsustainable. The CMF has remained below +0.05 for the majority of the time since October. This was at odds with the strong rally.
Realistic or not, here’s ZANO’s market cap in BTC’s terms
Therefore, while more gains are possible, traders and investors would do well to protect their gains and reduce their exposure to ZANO crypto.
Meanwhile, for the less risk-averse traders, the next bullish targets are $15.51 and $18.47.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
