zkSync climbs 11% in 24 hours – But a sharp pullback threatens the rally

zkSync is flashing clear signs that bullish capital is flowing back into the market, as the “zero knowledge” theme it builds on—along with its ties to privacy-focused crypto—keeps gaining traction, even across Google search.

The asset has jumped 11% over the past day, and the move carries building momentum behind it. Community investors are betting that zkSync will extend its climb, with 75% of the 53,700 traders polled positioned bullishly.

While this development looks bullish on the surface, the structure tells a different story. zkSync is likely to face a major decline in its next phase, as the chart structure stays bearish and the indicators flash early warning signs.

zkSync’s chart structure points lower

Two key structures explain why zkSync looks bearish. First, the asset is trading inside an ascending channel defined by parallel support and resistance lines. Second, price has pushed into a supply order block, marked by the blue box on the chart.

An ascending channel looks bullish because price keeps rising, yet it often forms right before a major drop—a drop that tends to drag price back toward the channel’s starting point.

Trading within this channel has now carried zkSync straight into the supply order block highlighted in blue. A supply zone marks the area where sell orders concentrate, and it frequently sparks a decline.

When these two signals line up, they raise the odds that the market stages a sharp drop and flushes out the “overly bullish capital in the market.”

Indicators show zkSync trading at a premium

The indicators confirm that zkSync is overvalued. The Bollinger Bands—a tool that gauges whether price is stretched relative to its recent range—now place zkSync in the overvaluation zone.

That zone shows zkSync trading at a premium to its value at the time. Historically, every time the asset entered this territory, buyers eventually exhausted themselves and prices rolled over, though no fixed timeline governs when that turn arrives.

Capital has also entered a phase where buyers are turning greedy and paying more than they should, betting that zkSync will hold the upward tempo the market has built.

The Money Flow Index tracks this, and it has now crossed above 80—another sign that the asset sits deep in overvalued territory and that buying pressure will scale back as the market resets.

How far the pullback runs matters here. A move below 50 would signal that the bears have taken full control, while a reading that holds between 50 and 80 could simply mark a rebound at one of the levels flagged by the dashed lines on the chart.

Futures flows remain supportive

zkSync’s Futures flows have stayed decent, supporting a continued stretch higher and further gains for the asset.

At the time of this report, the average Funding Rate had turned positive at roughly 0.0109%, which means most traders are channeling their capital into long positions in the perpetuals market as they position for a rally.

Given the structure, though, these long-biased traders are likely over-speculating—and that crowding could force a major round of liquidations.

Final Summary

• zkSync is up 11%, and most traders are betting it keeps climbing, but the chart is quietly flashing warning signs.
• The price now looks stretched and overbought, so a pullback could wipe out a chunk of the recent gains before any further upside.