ZORA Crypto: Can It Reclaim $0.148 ATH After Recent Pullback?
ZORA's Price Correction: Will It Recover?
Zora [ZORA] crypto experienced a rapid ascent from $0.108 to a new all-time high of $0.148 before retracing to around $0.121. The question now is whether it can regain its peak value.
During the rally, ZORA's market capitalization increased from $344 million to $478 million, with a 10% surge in 24-hour trading volume, reaching $350 million. These metrics indicate strong capital inflows and heightened network activity.
On-Chain Activity Reaches New Heights
Zora's recent recovery is supported by record-breaking on-chain activity. Key observations include:
- Increased Creator Participation: Since its integration with the Base App three weeks ago, there's been a surge in creator activity and improved retail access.
- Record Coin Creation: Data indicates that Daily Created Coins hit a record 62.4K.
- Unique Creators Surge: The number of Unique Creators has climbed to 27.8K, matching peak levels observed in July.
These trends highlight growing demand for the network, potentially driving token valuation higher.
Retail Demand Fuels the Rally
The resurgence in retail user participation also plays a significant role:
- Trading Volume Increase: Trading Volume rose to $15.3 billion, a level not seen since mid-July, when it reached $41 billion.
- Surge in Daily Trades: Total Daily Trade counts surged to 249.8K, a substantial recovery from 97k trades a week prior.
Accumulation Trends
Exchange activity suggests a strong accumulation trend:
- Negative Spot Netflow: CoinGlass data shows Spot Netflow consistently in negative territory, indicating outflows exceeding inflows.
- Exchange Balance Decline: Nansen data reveals a 7.71% drop in Exchange Balance, reducing the available supply on exchanges.
As of this writing, Spot Netflow was -$1.5 million, compared to -$1.26 million the previous day.
Technical Indicators
Technical analysis from AMBCrypto reveals:
- Bullish RSI Crossover: The Relative Strength Index (RSI) indicates overbought conditions, currently at 74.
- Positive CMF: The Chaikin Money Flow (CMF) remains positive at 0.09, confirming the presence of buyers.
The alignment of these technical indicators often suggests continued buyer dominance in demand-driven markets.
Potential Scenarios
If the current buying pressure and activity persist, ZORA could potentially reclaim $0.14 and target new all-time highs. However, a decline in momentum could lead to a price correction towards the $0.08 support level.