‎ZkSync Eyes Retracement Before Potential Bullish Continuation

‎ZkSync is currently experiencing a short-term pause as traders anticipate whether the recent bullish momentum will extend further or give way to a deeper retracement.

‎ZKUSD Key Levels

‎Support Levels: $0.06100, $0.04200
‎Resistance Levels: $0.08000, $0.09500

‎ZKUSD Long-Term Trend: Bullish

‎‎ZkSync’s price action has undergone a notable shift after bottoming around the $0.04200 zone. This level acted as a liquidity draw, sparking a strong bullish reversal from the prolonged decline. The initial bullish move was first interpreted as a mere correction within the broader bearish cycle, but the invalidation of a new low confirmed a structural change in market direction.
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‎Following this development, price successfully broke above the $0.06100 resistance, signaling a bullish break of structure and opening the path toward higher levels. This move has attracted buyer interest, positioning ZkSync for further potential gains if momentum is sustained. The focus now is whether the bullish structure can withstand near-term retracements.
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‎On the daily timeframe, the Relative Strength Index (RSI) has entered the overbought zone, pointing to slowing bullish momentum. Bearish candles have already started forming, which signals that a corrective pullback is likely before continuation. This retracement is expected to revisit a key order block, providing the foundation for the next leg higher toward the $0.08000 level.

‎ZKUSD Medium-Term Trend: Bearish

‎On the 4-hour chart, the market is showing early signs of bearish retracement. A failed high has been established alongside a series of lower lows, which highlights weakening buyer control in the short term. Price is currently gravitating toward the $0.06100 level, a critical zone to watch.
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‎If price breaks below this level, it is expected to trigger the daily order block and extend the corrective phase. However, the underlying bullish structure remains intact, suggesting that once this retracement is complete, buyers could regain control and drive price back toward the $0.08000 resistance with potential to breach it.

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