Raydium (RAY) and ZKsync (ZK) Retesting Key Breakout Levels Is A Reversal Ahead

Raydium (RAY) and ZKsync (ZK) Retesting Key Breakout Levels: Is A Reversal Ahead?


Date: Fri, Jan 10, 2025, 07:44 AM GMT

The cryptocurrency market is off to a shaky start in 2025. Following a bearish December, Bitcoin (BTC) tumbled sharply over the past four days, dropping from $102K to $91K before rebounding slightly to its current level above $94K. Bitcoin’s dominance has risen to 58%, which has triggered a broader decline across altcoins.

However, the market is showing mixed signs, with BTC up by 2% today. Notably, Raydium (RAY) and ZKsync (ZK) are making a noticeable rebound by coming back on green track.

RAY and ZK Token Prices
Source: Coinmarketcap

Both tokens are at pivotal moments in their price trajectories, as they retest key breakout levels, suggesting a potential reversal could be on the horizon.


Raydium (RAY)

Raydium (RAY) recently experienced a bullish breakout from a falling wedge pattern on January 3, 2025, propelling the price to a high of $5.92. However, the subsequent market correction dragged RAY back to retest its breakout trendline. As of now, RAY is trading at $4.81, which aligns with its key support level.

Raydium (RAY) Chart Analysis
Raydium (RAY) 1D Chart/ Coinsprobe (Source: Tradingview)

The current technical structure suggests a potential rebound if the price holds this support. If RAY bounces back, it could rally toward the $5.92 resistance, marking a potential 28% gain from current levels. Beyond that, the next critical resistance level is at $6.49.

MACD: The MACD indicates a potential bullish crossover as the momentum begins to stabilize, suggesting that buying pressure might return soon.

RSI: The RSI sits at 43, showing that the token is nearing oversold territory. This indicates room for a rebound if market conditions improve.


ZKsync (ZK)

ZKsync (ZK) followed a similar path, breaking out of its falling wedge pattern on January 3, 2025, and hitting a high of $0.23 shortly after. However, the recent downturn brought ZK back to retest its breakout trendline. Currently, ZK is trading at $0.181, resting on a critical support level.

ZKsync (ZK) Chart Analysis
ZKsync (ZK) 1D Chart/ Coinsprobe (Source: Tradingview)

If ZK holds this support, it could see a rally toward the $0.23 resistance, representing a potential 30% gain. Breaking above this level could pave the way for further gains, with the next resistance zones at $0.245 and $0.27.

MACD: The MACD shows early signs of recovery, with the histogram indicating a reduction in selling pressure. A bullish crossover could confirm upward momentum.

RSI: The RSI is at 40, reflecting oversold conditions, which could lead to a bounce if buyers regain confidence.


Is A Reversal Ahead?

Both RAY and ZK are at pivotal support levels, and their technical setups suggest the potential for a reversal. The broader market’s direction, particularly Bitcoin’s dominance at 58%, will play a crucial role in shaping the future movements of these tokens.

If Bitcoin continues to hold its $91K-$94K support range and rebounds further, it could restore confidence in the market and provide the push needed for altcoins like RAY and ZK to regain bullish momentum.

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Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always conduct your own research before making investment decisions in the cryptocurrency market.


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