ZKsync (ZK) Hits Resistance After 42% Surge – Next Steps for Price

Key Takeaways

• ZK forms a strong ascending channel, hinting at the upside.
• Overbought RSI signals potential corrective move underway.
• A successful support retest could start a new uptrend at $0.24.

ZKsync (ZK) saw a price surge to nearly $0.30 on June 17, but it quickly reversed, dipping below its listing price by Aug. 5.

Since then, ZK has shown signs of recovery, forming an ascending channel and reaching a high of $0.161 on Nov. 12.

Analysts are now watching for a corrective move, as the recent five-wave sequence suggests a potential consolidation before another upward phase.

ZK Price Analysis 

After the initial price pump to a high of nearly $0.30 on June 17, the price of ZK reversed.

It returned to its listing price of $0.0.95 and even spiked a bit lower on Aug. 5. Since then, it started to recover, forming an ascending channel. 

A five-wave move developed to a high of $0.161 on Nov. 12, the third interaction with ascending resistance. A rejection occurred after the first five-wave sequence ended, signaling the potential beginning of a corrective move.

The ascending channel could be interpreted as the starting bullish structure as a leading diagonal. If this was the first uptrend, ZK is now entering a correction that should establish a higher low before more upside. 

The daily chart Relative Strength Index (RSI) reached 65%, signaling overbought conditions. The rejection should lead to another retest of the horizontal support zone, and its interaction result will provide further insight into the next primary trend. 

ZK Price Prediction 

Zooming into the hourly chart, we see the rise since Aug. 5, which will likely conclude on Nov. 12, as the price showed signs of struggle.

The momentum started slowing down on Nov. 10 and trading sideways before falling by 10%. 

This could be a starting A wave from the ABC correction. Projecting its target to a 0.618 Fibonacci level at $0.11 matches the upper boundary of the horizontal support zone, further validating our assumption of the coming retest.  

Should this retest be successful, ZK could start a new uptrend, leading to sustained upside momentum.

Measuring its potential with the Fibonacci extensions tool, a target of $0.24 is presented as the 1.618 Fibonacci level. 

About the Author

Nikola Lazic

Nikola Lazic is a cryptocurrency analyst and investor working in the industry since 2017. He holds a bachelor's degree in Sociology, which enables him to better understand the psychology behind the crowd´s positioning. Consequently his preferred analytical tool is Elliott Wave Theory in combination with price action analysis. Combining his experience in trading and investing with knowledge in content writing he strives to bring the most accurate and actionable information. Expertise: Cryptocurrencies, Technical analysis, Elliott Wave Theory, On-chain metrics, Research reports.

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