ZKSync (ZK) — Decision Point: Breakout or Breakdown?

The ZKUSDT (Daily) pair has reached a critical juncture that will decide its next major move. Since early 2025, price action has been trapped below a descending trendline, acting as a dominant wall of selling pressure. Every breakout attempt has been rejected, reaffirming bearish control.

Now, the price is sitting right at the crossroads — between the descending trendline above and a key accumulation/support zone at 0.0465–0.040 (yellow block) below.
This zone isn’t just another range — it’s the battleground that will determine whether ZKSync is preparing for a major reversal or about to continue its downtrend into new lows.


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Pattern & Structure:

Formation of a Descending Triangle with a flat horizontal base (0.0465–0.040) and a falling trendline resistance.

The structure shows persistent selling pressure, but every dip into the lower zone attracts strong buying reactions — a clear tug-of-war between bulls and bears.

A recent liquidity grab (false breakout wick) signals stop-hunting activity, often a precursor to a major move.

The market is coiling tightly — volatility compression suggests a large expansion phase is near.


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Bullish Scenario: “Reversal Confirmed”

If ZK successfully closes and holds above the descending trendline with strong momentum and volume, it could mark the start of a new medium-term uptrend.

Key confirmation:

Daily close above 0.048–0.050

Successful retest of the trendline as new support


Upside targets:

1. 0.058 — first resistance and structural pivot


2. 0.070 — confirmation of trend reversal


3. 0.082 → 0.132 — extended bullish targets if momentum continues



Rationale:
Breaking a descending triangle to the upside often triggers a short squeeze as traders exit bearish positions, accelerating price movement and initiating a shift in market structure.


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Bearish Scenario: “Final Breakdown”

If ZK fails to hold its ground and closes daily below 0.040, the descending triangle pattern would confirm as a bearish continuation, signaling further downside.

Key confirmation:

Strong daily close below 0.040

Failed retest from below (support turned resistance)


Downside targets:

1. 0.028 — previous local low


2. 0.023 — potential capitulation zone



Rationale:
Losing this base indicates buyers have fully lost control. Historically, such breakdowns lead to sharp selloffs as short-term holders exit rapidly, increasing momentum on the downside.


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Conclusion:

> ZKSync is sitting at a make-or-break level — a zone that will define the next directional wave.

Bullish case: breakout above trendline → targets 0.058–0.070.

Bearish case: breakdown below 0.040 → targets 0.028–0.023.


Expect a major volatility expansion once this compression phase resolves.




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Trading Strategy & Risk Notes:

Wait for daily candle confirmation, not just wicks — avoid getting trapped in fakeouts.

Conservative entry: after breakout + retest.

Aggressive entry: near support with clear rejection confirmation.

Stop-loss: below 0.040 (for longs) or above 0.0465 (for shorts).

Maintain a risk/reward ratio of at least 1:2 and scale out profits at each target level.



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Key Technical Levels:

Support zone: 0.0465 – 0.040

Trendline resistance: ~0.048–0.050

Upside levels: 0.058 → 0.070 → 0.082 → 0.132

Downside targets: 0.028 → 0.023

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