‎ZKSYNC Bearish Dominance Persists Amid Potential Short-Term Bullish Pullback

‎ZKsync Market Analysis- October 21

‎ZKUSD continues to exhibit dominant bearish momentum across the higher timeframes, though recent market reactions suggest the possibility of a short-term bullish correction before the broader downtrend resumes.

‎ZKUSD Key Levels

‎Support Levels: $0.03300, $0.01600
‎Resistance Levels: $0.05200, $0.07200

‎ZKUSD Long-Term Trend: Bearish

‎ZKSYNC (ZKUSD) continues to maintain its bearish trajectory as price action sustains a gradual decline along the descending trend line. Unlike the previous sharp downward move, the current decline is characterized by a more compact and controlled range, reflecting a steady continuation of bearish sentiment.
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‎Upon reaching the key $0.03300 demand level, price experienced a sharp dip below this zone but failed to sustain the bearish pressure. A strong rejection followed, leaving a long lower wick that highlights buying interest at this level. Despite this temporary rebound, the bullish candle’s body remains aligned with the established trend line support, confirming the validity of the prevailing downtrend structure.
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‎The daily Relative Strength Index (RSI) indicates that the market is currently oversold, with early signs of momentum buildup suggesting the possibility of a short-term bullish pullback. This retracement is expected to extend toward the daily trend line resistance before sellers likely regain control to resume the dominant bearish movement.

‎ZKUSD Medium-Term Trend: Bullish

‎On the 4-hour timeframe, ZKUSD shows early signs of bullish recovery as a “failed low” formation emerges — a structure that typically signals weakening bearish pressure. This aligns with the daily RSI’s indication of a potential bullish correction in progress.
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‎Additionally, price action has moved above the 4-hour Moving Average, providing further confluence for a short-term bullish outlook. The current momentum is expected to carry price toward the $0.05200 supply zone, where it may encounter resistance near the descending trend line before determining the next major directional move.

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