ZKsync’s token soared 70% after Buterin’s praise, then crashed hard | Credit: Hameem Sarwar
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Key Takeaways
ZK surged over 70% after the Ethereum co-founder praised the project.
Despite a drop, the BBP and Supertrend indicators remain positive.
Holding above $0.049 could lead ZK to a breakout toward $0.075.
It started like a crypto fairytale as Ethereum co-founder Vitalik Buterin praised ZKsync.
Instantly, the token took off. But the story didn’t end with a happy moonshot.
After a 70% surge some days ago, the ZK token gave some of it back, falling victim to the ‘buy-the-rumor, sell-the-news’ dynamics.
At the time of writing, the ZKsync price has decreased by 32.80%. Here is a breakdown of all that led to the pump, dump, and what’s next for ZK’s price.
Vitalik’s Post Sent ZKsync Flying
Last Friday, the ZK token traded at $0.029. A day later, Alex Gluchowski, co-inventor of the ZKsync technology, posted that Ethereum had become the central capital hub for ZKsync
“This completely changes the L2/L1 dynamics. Every token and market anchored to Ethereum becomes accessible liquidity for ZKsync chains in real time at institutional settlement standards,” Gluchowski declared.
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The real momentum, however, came when Vitalik Buterin quoted Gluchowski’s post, publicly praising the project.
“ZKsync has been doing a lot of underrated and valuable work in the Ethereum ecosystem. Excited to see this come from them!” The Ethereum co-founder stated.
Following Buterin’s endorsement, ZK’s price broke out of a descending channel and, on the 4-hour chart, formed nine consecutive green candlesticks, rallying sharply to $0.0068.
Since then, the token has retraced slightly, with ZK now trading at around $0.049 at the time of writing. This seems like a typical cooldown phase after an accelerated rally.
Things Have Changed
As shown on the 4-hour chart, ZKsync’s price decline has resulted in the formation of a bullish pennant.
This setup suggests that the market may be consolidating before the next leg higher, provided buying momentum returns.
Meanwhile, the Awesome Oscillator (AO) has flashed red histogram bars, signaling a short-term cooling of momentum.
However, if the Awesome Oscillator (AO) flips into negative territory, it could invalidate the bullish structure, leading to a retest of support around $0.041.
In a highly bearish case, continued selling could push ZK’s price down to $0.033 before any meaningful recovery.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Victor Olanrewaju is a crypto analyst and reporter at CCN with deep roots in on-chain research and technical analysis. His crypto journey began in 2017, but it was the 2020 Uniswap airdrop that sparked a full-time pivot into the space.
With a foundation in copywriting, Victor honed his craft creating high-converting content for leading crypto brokers — most notably an XRP price prediction that ranked #1 on Google during the 2021 bull run.
He later joined AMBCrypto in 2022, where he combined storytelling with technical and on-chain analysis to cover key market narratives.
In 2024, he expanded his expertise at BeInCrypto, collaborating with analysts and using tools like Glassnode, Santiment, and IntoTheBlock to break down Bitcoin and altcoin trends.
At CCN, Victor covers the top cryptocurrencies, memecoins, macro shifts, blending real-time insights with deep-dive metrics.
He holds a Bachelor’s degree in Physics from the University of Ibadan, equipping him to simplify complex data for a wide audience. Follow his work or connect on LinkedIn or X.
