- A liquidation cascade and on-chain liquidity withdrawal sent ZKJ crypto’s prices careening.
- The move beyond $0.4 could be the beginning of a recovery, but the bigger picture must be considered
Polyhedra Network [ZKJ] crypto prices were slashed by 81% on the 15th of June, falling from $1.95 to $0.35 in two hours after a series of abnormal on-chain transactions, explained Polyhedra Network in a post on X.
The network assured users that its fundamentals remained strong, but the event will have shaken holders’ faith.
In another post, Binance stated that the huge price drop was a result of large holders removing on-chain liquidity, causing a liquidation cascade in the market.
Some market participants thought that it was likely linked to the 15.5 million ZKJ unlock on the 29th of May.
There were also accusations of foul play directed at Polyhedra, but major platforms have not corroborated these claims.
Short-term ZKJ crypto targets
Source: ZKJ/USDT on TradingView
The price action was catastrophic on the 15th of June, and a recovery seemed out of reach. Technical analysis only had a limited scope, given the recent events.
Moving ahead, at press time, the 1-hour price chart showed that bears were still dominant. Even though the price poked its head above a lower high at $0.4, the DMI remained strong.
The A/D indicator has been moving sideways over the past 24 hours, but this came alongside slow, steady higher lows.
It reflected a slightly elevated buying volume compared to selling, but traders should remain cautious of volatility.
The 24-hour liquidation heatmap showed that the $0.35 and $0.39 levels were the short-term magnetic zones.
The chart above was the 5-minute timeframe, which signaled a bearish bias, but was too low to consider for any traders who aren’t scalp traders.
The Polyhedra Network and holders’ actions are critical, more so now than ever. Hence, investors and traders should wait for further news developments before making decisions on ZKJ.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
