ZORA defies L2 FUD after Vitalik’s comments, breaking trendline resistance | Credit: Hameem Sarwar
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Key Takeaways
ZORA has broken its descending trendline and is consolidating above the $$0.027 zone.
Strength persists despite criticism of Ethereum L2s, signaling market preference for ZORA.
Sustained hold above the 0.236 Fibonacci level will likely strengthen the bullish case.
ZORA, the token powering a creator-driven economy on Base, has started February with a big move.
The token has rebounded about 13% over the past 24 hours, breaking out above a descending trendline that had been compressing the price for weeks.
Interestingly, this development comes after Ethereum co-founder Vitalik Buterin declared that L2s have overstayed their relevance.
In this analysis, CCN explains how the ZORA price defied the comment and what is next.
ZORA Surges Against the L2 Noise
On the 4-hour chart, the momentum picture is quietly improving. The Relative Strength Index (RSI) is back above the 50 midline at 52.81 and, more importantly, it’s carving higher lows.
Furthermore, the Moving Average Convergence Divergence (MACD) confirms the same directional change, with a bullish crossover
It’s not a guarantee of follow-through. But it’s the kind of alignment you want to see when a token is trying to transition out of a downtrend.
Price structure supports the read. ZORA has reclaimed the $$0.027 region, flipping what prior resistance was into a potential support shelf.
If that zone holds, it increases the odds that this rebound can extend toward the next supply pocket above.
No Vitalik, No Problem
The interesting part is the context. ZORA’s strength is showing up as the Ethereum L2 conversation grows louder and more skeptical.
Notably, Buterin has recently questioned whether L2s continue to provide Ethereum with value. As a result, several tokens from these projects plunged to record lows.
But it wasn’t the same for the ZORA token. Why?
Well, according to CCN’s findings, it appears that the Base team has been preparing for Ethereum to throw L2s under the bus.
For instance, after Buterin’s post, Jesse Pollak, a builder at Base, noted that L2s need to focus more on distribution and adoption.
“Base is going to keep driving hard towards our mission: building a global economy that increases innovation, creativity, and freedom. to do that, we’re already leaning into the kind of differentiation vitalik is talking about here, and have been supported by the EF in doing so,” Pollak explained.
Amid the development, Alex Svanevik, CEO of the on-chain analytics platform Nansen, said the news could give Base the chance to become an L1 and issue its own token.
“Base has the justification needed to become an L1 and launch its own token,” Svanevik mentioned.
Short Squeeze to Send Token Higher
Outside the technical setup, CCN noted that the ZORA token initially extended its downtrend into early February, sliding to around $0.027.
However, the price has bounced while funding rates turned sharply negative, signaling crowded short positioning.
However, the funding-rate extreme now hints at short-term exhaustion, raising the risk of a technical bounce if selling pressure eases.
But as it stands, the ZORA price might keep making higher lows. As a result, it could reclaim the recent breakdown levels while funding remains below zero.
Should that trend continue, it could mean higher odds of a squeeze-driven leg up. As such, the ZORA token might trade higher.
ZORA Price Prediction
Zooming out to the daily chart, the trend isn’t fully reversed yet, but the pressure is easing.
Furthermore, ZORA’s price has been holding above $0.027 while printing higher lows, which is usually how a base starts forming.
The Money Flow Index (MFI) staying above neutral suggests buying pressure hasn’t vanished after the pop. Likewise, the Awesome Oscillator (AO) has turned green, even though it remains negative.
As a result, the next point of interest is the 0.236 Fibonacci level, where ZORA’s price has been rejected before.
A sustained break and hold above that area would strengthen the bullish case and open the door to higher resistance zones.
If it fails, the map is simple: the market likely revisits $0.027, and a loss of that support risks a sharper reset, with the next major support much lower, near $0.0074.
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.
