Understanding This Week's ZK Price Trends and Future Expectations

This article elaborates on the recent price movements of ZKSync (ZK) and how it correlates with major market drivers like Bitcoin (BTC) and ZCash (ZEC). With observational data, it provides insights into short-term price actions, potential trading strategies, and what traders might expect in the coming days.

Key Takeaways

On November 6, ZKSync (ZK) experienced a significant 15% increase in price, rising from $0.066 to $0.076 in just two hours.
During this period, Bitcoin (BTC) also saw a 2% increase from $100,300 to $102,300, while ZCash (ZEC) surged by 6.86%, going from $510 to $540.
ZCash's performance is particularly noteworthy as it has driven the current interest in privacy tokens, often impacting ZK's price trajectory.
Recently, ZK retraced by 1% from its local high of $0.076, signaling a potential short-term range formation. The longer-term trend remains bullish, and a shift in market sentiment could revive the uptrend.

Understanding This Week's ZK Price Trends

ZK Price in a Short-term Retracement Phase

ZK 1-day Price Chart

Source: ZK/USDT on TradingView

The daily price chart indicates that ZK has established a bullish trend after surpassing the $0.065 swing high observed earlier in October. The On-Balance Volume (OBV) and trading volume metrics have shown robust demand recently, suggesting that ZK could experience additional gains as this bullish momentum continues.

ZK 1-hour Chart

Source: ZK/USDT on TradingView

Examining the 1-hour chart, we can identify a short-term price range between $0.066 and $0.077. The recent retracement from Wednesday's heightened price reflects a rejection at the upper range, with prices declining toward the lower boundary.

Both the OBV and the Relative Strength Index (RSI) appear neutral, indicating no substantial advantage for either bulls or bears at this time. Traders may consider opportunities to buy ZK following a brief dip below the $0.066 mark. Nonetheless, if the price falls below the $0.058-$0.060 range in the next few days, it could signal increased short-term bearish pressure, raising the likelihood of further price retracement.

ZK Liquidation Heatmap

Source: CoinGlass

The liquidation heatmap shows that liquidity has built up just outside the extremes of the current trading range. A price dip towards the $0.064-$0.065 zone is anticipated in the next day or two, which could create a buying opportunity aimed at reaching the overhead target of around $0.079. While this potential drawdown may not lead to a deeper correction down to the $0.045 liquidity pocket, it remains a possibility, especially if ZCash or Bitcoin encounters a bearish turn.