Cryptocurrency ZBCN soars by 395% in May; questioning whether the upward trend will persist following UK economic growth.
Zebec Network's Token Surges 10x in Q2, Offering Prepaid Cards to UK Students
Zebec Network's native token, ZBCN, has experienced a remarkable 10x increase since April, following its expansion to the UK. The multi-chain DeFi protocol, which focuses on payments and stablecoin-based payroll solutions, announced its acquisition of Science Card to provide prepaid cards to UK students on May 29th.
This move seems to have fueled the token's growth, with an additional 14% increase on the same day. In the preceding 30 trading days, ZBCN surged 395%. The question remains whether this winning streak will continue.
Analysing the ZBCN Crypto Rally
Technical analysis suggests strong demand for ZBCN, as indicated by the Relative Strength Index (RSI), which shows a more volatile market (ATR). The asset gained over 70% this week alone and may climb higher if demand stays robust. However, the RSI indicates that the market could be overbought, potentially leading to a correction. In such a case, a dip to $0.005 or the 0.5 Fib retracement level ($0.004) might offer fresh buying opportunities.
Under these circumstances, the token could rebound to $0.007 or aim for the next Fib level of $0.001, offering a potential 55% gain if reached. However, if the price falls below the 0.5 Fib level and the Exponential Moving Average (EMA) bands, the bullish thesis could be invalidated.
Leverage and Market Risks
Another aspect to consider is the significant leverage involved in the token's explosive run. In the past three days, ZBCN gained +60%, but spot market demand decreased, as shown by spot CVD. Conversely, leverage, as reflected by the surge in Open Interest (OI), increased 113%. If the spot market demand doesn't recover, this unsustainable uptrend could lead to corrective measures.
It's worth noting that there is limited overhead liquidity pool beyond $0.008. However, a substantial liquidation pool of leveraged longs exists around $0.004, which, if reached, could act as a price magnet during a liquidity-driven correction. This level aligns with the 0.5 Fib level highlighted on the price charts, making it a potential buying opportunity during a pullback.
Disclaimer: The information provided does not constitute financial, investment, trading, or other types of advice and is solely the writer's opinion.
Subscribe to our must-read daily newsletter for insights on the PENGU memecoin
ShareTweet
- The surge in Zebec Network's native token, ZBCN, can be attributed to its move into the UK market and acquisition of Science Card, which offers prepaid cards to UK students, thereby expanding its DeFi finance and technology-driven payment solutions.
- As ZBCN's price continues to rally, technical analysis indicates a possible overbought market, with potential corrections anticipated at the $0.005 or the 0.5 Fib retracement level ($0.004), offering fresh buying opportunities for those interested in crypto, token, DeFi, finance, and technology.
