‎ZkSync Pauses as Bullish Reversal Faces Retracement Pressure

‎ZKsync Market Analysis – August 26

‎ZkSync’s bullish reversal shows signs of strength, but the market is currently pausing as short-term retracement pressure emerges.

‎ZKUSD Key Levels

‎Support Levels: $0.04900, $0.03600
‎Resistance Levels: $0.06630, $0.08600

‎ZKUSD Long-Term Trend: Bullish

‎ZkSync has experienced a strong recovery after a prolonged bearish phase. Price initially declined to the $0.04900 demand level, where an early bullish attempt emerged but failed to sustain momentum. The deeper drop to $0.03600 marked the true reversal point, as price began forming a clear recovery structure.
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‎The development of a reverse head and shoulders pattern provided strong confirmation of a completed bullish reversal, supported further by a shift to higher-high formations in price action. These signals reinforced the ongoing bullish momentum, positioning ZkSync for sustained upside.
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‎However, recent price behavior has shown a temporary pause. A failed high pattern appeared, which typically suggests bearish pressure. In this case, the move is more likely signaling a retracement rather than a full reversal. The critical zone to watch remains the $0.04900 demand level, as maintaining this support is key for the bullish outlook to remain intact.

‎ZKUSD Medium-Term Trend: Bearish

‎On the 4-hour chart, momentum has shifted as price broke below a minor bullish trendline, leading to the failed high formation. This breach initiated a bearish leg, with price now expected to retest the $0.04900 demand level.
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‎Technical indicators align with this bearish retracement. The 4-hour Moving Average currently shows price trading below it, signaling short-term weakness. Similarly, the Relative Strength Index (RSI) has declined from near overbought levels, reflecting diminishing momentum and supporting the case for a corrective move lower before potential continuation of the broader bullish trend.

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