ZORA’s price has increased 4% in the last 24 hours, driven by a slight rebound in the broader cryptocurrency market.
Despite today’s price lift, technical and on-chain readings indicate that this distribution phase remains firmly in play, with bearish sentiment still dominating the market.
ZORA’s Bullish Steam Fades
Readings from the ZORA/USD daily chart reveal a recent negative crossover in ZORA’s Moving Average Convergence Divergence (MACD) indicator. This occurs when the MACD line (blue) breaks below the signal line (orange), a classic bearish signal suggesting waning momentum.
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An asset’s MACD indicator identifies trends and momentum in its price movement. It helps traders spot potential buy or sell signals through crossovers between the MACD and signal lines.
When the MACD line is above the signal line, it indicates bullish momentum, suggesting that the asset’s price may continue to rise.
On the other hand, when the MACD line sits below the signal line and falls toward the zero mark — as is currently the case with ZORA — it signals fading bullish momentum and a potential shift toward bearish control.
Furthermore, the sentiment among ZORA’s futures is not any different. This is reflected by its long/short ratio, which sits at a 14-day low of 0.92.
The long/short metric measures the proportion of long bets to short ones in an asset’s futures market. A ratio above one signals more long positions than short ones. This indicates a bullish sentiment, as most traders expect the asset’s value to rise.
On the other hand, a long/short ratio below 1 means that more traders are betting on the asset’s price to decline than those expecting it to rise.
Therefore, ZORA’s current long/short ratio suggests that most traders are increasingly bracing for a correction rather than a push to new highs.
ZORA Stalls at Resistance — Traders Brace for Sharp Move
At press time, ZORA trades at $0.06799, resting just below the resistance formed at $0.06802. If the bears strengthen their control and buying falls, the token could witness a pull toward the support floor at $0.05666.
However, if accumulation grows and ZORA breaches $0.6802, it could extend its gains to $0.08431.
The post ZORA Price Rises, But Bearish Indicators Hint at a Trap for Late Buyers appeared first on BeInCrypto.
