ZK Crypto Sees 162% Price Surge in Just 48 Hours

The ZK crypto experienced a remarkable price increase of 162% in just two days, largely driven by the growing demand for privacy in the cryptocurrency market. Investors are turning their attention to alternatives like ZKSync and Dash amidst the rising interest in ZCash. However, despite the rapid gains over the weekend, caution is advised as bearish trends linger.

Key Takeaways

Growing interest in privacy cryptocurrencies has boosted ZKSync's appeal alongside ZCash and Dash.
Despite a 162% price surge, ZKSync exhibits a bearish market structure, prompting caution among investors regarding potential profit-taking.
The demand for privacy tokens suggests that ZKSync may continue to gain traction, especially with its zero-knowledge proofs (ZKPs) that enhance transaction validation while protecting user data.
ZKSync operates as a Layer 2 solution, balancing high efficiency and enhanced privacy; this likely contributed to its price rally from $0.0286 to $0.0753 by November 2.

Why did ZK crypto's price climb by 162% over the weekend?

Assessing the Sustainability of the ZK Crypto Rally

ZK 1-day Chart Source: ZK/USDT on TradingView

Analyzing the 1-day chart, ZK continues to show a bearish market pattern. The price movement from $0.065 to $0.02815 in October was almost fully retraced by November 2, yet the overall market structure remains intact. To shift the outlook to a bullish trend, a daily close above the swing high of $0.065 is essential.

Swing traders looking for confirmation of price trends can bide their time until this key level is surpassed. Notably, the On-Balance Volume (OBV) surged significantly due to an unprecedented increase in trading volume over the past 48 hours, indicating a robust demand that may propel the rally further if it persists.

Meanwhile, the Money Flow Index (MFI) has entered overbought territory. Although this does not guarantee a price correction, it signals that traders should watch for possible short-term consolidation or a pullback that could form a higher low.

Liquidation Data Reveals Important Support Levels

ZK Liquidation Heatmap Source: CoinGlass

The Liquidation Heatmap indicates that short liquidations at $0.036 and $0.04 played a significant role in pushing the price upward. At the time of writing, ZK was trading around $0.04, close to notable long liquidation clusters formed in the last two days.

This price level may present an attractive buy-on-dip opportunity; however, more cautious traders might prefer to wait for a confirmed breakout above $0.065 before re-entering the market.

Disclaimer: The information offered herein should not be considered financial, investment, or trading advice and reflects the writer's personal opinion.