‎ZKUSD Faces Temporary Relief as Long-Term Bearish Pressure Persists

‎ZKsync Market Analysis – October 14

ZKSYNC shows signs of a short-term bullish retracement within an overall dominant bearish structure, hinting at potential continuation of downside momentum.

‎ZKUSD Key Levels

‎Support Levels: $0.02200, $0.00120
‎Resistance Levels: $0.04450, $0.07200

‎ZKUSD Long-Term Trend: Bearish

‎ZKSYNC recently experienced a decisive bearish break of structure, signaling the beginning of a new downward phase. Unlike the previous compact bearish movement, this fresh wave of decline has developed into a broader and more expansive bearish trend.
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‎After slipping below the $0.04450 level, price witnessed a sharp and substantial drop to the $0.02200 demand zone, where a swift rejection produced a notable wick formation. This reaction suggests that buyers attempted to regain control following the intense selloff. Currently, ZKUSD is undergoing a bullish retracement, supported by the daily Relative Strength Index (RSI), which indicates recovery from the oversold region.
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‎The anticipated retracement is projected to test the daily bearish order block before encountering renewed selling pressure. Once this retracement is complete, the prevailing bearish momentum is expected to resume with more aggressive declines and stronger bearish candles, maintaining the overall downside structure.

‎ZKUSD Medium-Term Trend: Bullish

‎On the 4-hour chart, ZKUSD is currently exhibiting a temporary bullish correction in line with the expected retracement on the daily timeframe. The RSI on this timeframe shows that the asset has begun recovering from the oversold zone as buyers step back in to fuel a short-term rally.
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‎Furthermore, price action has started to trade above the 4-hour Moving Average, reinforcing a near-term bullish stance. However, this upward move is likely to remain corrective in nature. As price retraces toward the daily bearish order block, a subsequent rejection could drive a renewed decline toward the $0.02200 demand level—potentially leading to a deeper close below it.

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