ZBCN crypto rallies 395% in May – Will the rally sustain after UK growth?

• Zebec Network expanded to the UK to offer prepaid cards and support students. 
• Its native token, ZBCN, has exploded 10x since April and surged nearly 400% in May. 

Zebec Network [ZBCN], a multi-chain DeFi protocol advancing payments and stablecoin-based payroll, has mooned 10x in Q2.

Its native token, ZBCN, logged an extra 14% on the 29th of May, after acquiring Science Card, to offer prepaid cards to UK students. 

In the past 30 trading days, the token has surged 395% and over 900% (10x) since April. Will the winning streak continue? 

Assessing the ZBCN crypto rally

Source: ZBCN/USDT, TradingView

On the charts, key indicators showed strong demand (RSI) and a more volatile market (high Average True Value, ATR, red). The asset gained over 70% this week alone, and may climb higher if the demand remains strong. 

However, RSI was in the oversold territory, and a correction could not be overruled. If so, a dip to $0.005 (white zone) or the 0.5 Fib retracement level ($0.004) could offer new buying opportunities.

In such a scenario, the token could re-target $0.007 or extend to the next Fib level of $0.001. The latter could offer an extra 55% if hit. 

However, the bullish thesis would be invalidated if the price drops below the 0.5 Fib level and the EMA (Exponential Moving Average) bands. 

Leverage-driven pump 

Source: Coinalyze

Another risk factor for the token’s explosive run was massive leverage. In the past three days, ZBCN rallied +60%, but spot market demand declined as shown by spot CVD (Cumulative Volume Delta).

On the contrary, leverage, as illustrated by the spike in Open Interest (OI), increased 113%, suggesting an unsustainable uptrend if spot market demand doesn’t recover. 

Worth pointing out, however, that there was little overhead liquidity pool beyond $0.008. But below the price action, there was a massive liquidation pool of leveraged longs around $0.004 (orange zones). 

In case of a liquidity-driven correction, the level could act as a price magnet. Interestingly, the area of interest aligned with the 0.5 Fib level highlighted on the price charts.

This meant that the area could be a great buying opportunity during a pullback.

Source: CoinGlass

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion