ZkSync Price Analysis: What To Do As Airdrop Threatens ZK Sell-Off To Zero
ZkSync Price Analysis: The price of ZK tokens dropped a further 7% during European business hours on Friday to trade at $0.198. The token is less than a week old but has witnessed a massive sell-off after the team launched their long-awaited airdrop on Monday this week. The airdrop, however, received much criticism from the crypto community following intense Sybil filtering measures.
ZkSync Price Analysis: Up or Down? The Community Will Decide
ZK price chart is a huge descending triangle from day one of trading. And while there is not much technical data to go with owing to the age of the token, fundamentally, there is a lot to say. ZK price action is trending below the 50-day simple moving average (SMA), which is not bullish.
The price action also seems to be logged at the lower trend line of the descending triangle. This is a dangerous zone, as negative news can easily cause the price to slide lower.
Generally, descending triangles are bearish continuation patterns, but they occasionally break to the upside, especially if the market sentiment is bullish.
A break to the upside may result in a 43% increase from the current price to set the token at $0.28, above its all-time high price. Conversely, a break below this crucial support structure may culminate in a 37% drop to settle around $0.1185.
Data from Coinalyze shows that the ZK open interest (OI) is up 11% in the past week. The OI chart shows a bullish pennant forming, which is an indicator of more upside in the coming days.
The daily aggregated ratio of longs vs. shorts is 1.64, with longs being the majority. This indicates investors are optimistic about the future price of ZK and are willing to bet on it. Furthermore, there have been more short liquidations than long liquidations in the past 24 hours, showing the overall sentiment for the token is bullish.
Is ZkSync Still Worth a Buy?
Technology-wise, ZkSync may be the best Layer 2 blockchain among all the others. However, in terms of handling the community, the team may have dropped the ball.
The ZkSync airdrop resulted in a massive outcry from the community, which felt left out due to an aggressive Sybil filter mechanism that resulted in a significant portion of the community missing out. Binance later came to the rescue with their Binance ZK Token Distribution program, which will distribute 10,500,000 ZkSync tokens to users who missed the airdrop.
Bottom Line
ZkSync is among several other recently launched crypto projects with unsatisfied community members. Nevertheless, the ZkSycn network is one of the best layer 2 blockchains, having spent 4 years building and perfecting their network.
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