ZEREBRO gains 68% in a month: Is $1 within reach?

• The rally followed the asset breaking out of a consolidation channel, where it had traded for several days.
• Currently, a strong support level on the chart suggests ZEREBRO could climb even higher, potentially reaching $0.80 or more.

ZEREBRO has shown an impressive upward trajectory, gaining 67.92% over the past month and an additional 35.90% in the last 24 hours. As of now, its market capitalization stands at $541.6 million.

While these gains might suggest ZEREBRO is nearing its peak and could retrace, AMBCrypto’s analysis indicates that the asset remains bullish, with room for further upside.

Is ZEREBRO ready for further gains?

ZEREBRO’s recent rally stems from the asset breaking out of a major consolidation channel that persisted for weeks starting in November, propelling it higher on the charts.

Typically, this breakout signals a push toward a peak of $0.64, but the asset is currently slowing down at $0.55. Analysis suggests two possible paths for ZEREBRO: reaching the $0.64 peak or climbing higher to the $0.80–$1 range.

In the latter scenario, illustrated in the accompanying chart, ZEREBRO would first need to retrace to a support level at $0.497. A rebound from this level could then push the asset toward $1, potentially boosting its market capitalization beyond $1 billion.

To assess the likelihood of sustained bullish momentum, AMBCrypto analyzed key technical indicators, which confirmed that the bulls remain active.

Rising accumulation could lead ZEREBRO higher

At the time of writing, ZEREBRO’s Accumulation/Distribution (A/D) indicator showed an accumulation phase, confirmed by an upward-trending line.

The A/D indicator combines price and volume to gauge market direction. When it trends upward alongside price movement, as seen here, it suggests high demand for the asset.

To confirm the directional bias, the Average Directional Index (ADX) was analyzed. The ADX measures the strength of a price trend.

When an asset’s price trends higher alongside a rising ADX, it indicates strong bullish momentum. For ZEREBRO, an ADX reading of 42.62 reinforces this bullish outlook, suggesting the asset could climb further from its current price point.

On-chain metrics also align with this trend, showing increased activity among derivative traders in the market.

Derivative traders go long 

ZEREBRO has seen a surge in long contracts within the derivatives market. At the time of writing, the Funding Rate stands at 0.0320%, reflecting increased bullish sentiment among traders.

A rising funding rate typically indicates a bullish market, as long traders (buyers) are are willing to pay a premium to maintain their positions.

This shows confidence in ZEREBRO’s upward momentum, with traders covering the price difference between the spot and futures markets.

If this trend continues, ZEREBRO could either experience a brief dip before a significant rally or head straight toward a new all-time high.