Buckle Up, ZORA Holders! This Crypto Rollercoaster Might Be Heading for a Dip

Listen up, crypto fans! ZORA, the heart-pounding token of the Zora network, could be in for a wild ride. The charts are screaming bearish signals, so hold on tight!

Zora (ZORA) just rocketed 28% to hit a mind-blowing $0.0128 on June 5, blasting its market cap past the $40 million mark. But hold your horses—this party didn't last long!

Prices crashed back down, wiping out a chunk of those sweet gains. And get this: trading volume exploded over 150% in the last 24 hours. Could early holders be jumping ship? You be the judge!

ZORA's rollercoaster ride kicked off when South African hip-hop sensation Jaykatana dropped his latest track, "SIZOKUTHOLA," straight on the Zora Network. It's a follow-up to their sizzling May partnership. Talk about a power move!

In case you're new to the scene, Zora is a slick Layer-2 blockchain that lets you tokenize and own all sorts of on-chain media—music, images, even your wild social posts from decentralized apps. It's the future, baby!

But here's the twist: Zora's network activity is tanking, and it's not playing nice with the price action.

The on-chain stats are brutal. According to Dune Analytics, the number of smart contracts created on Zora plummeted from a whopping 144,402 on Oct. 14, 2024, to a measly 1,549 by June 2. Yikes!

Transactions are down from a mind-boggling 6.45 million to just 121,000, and active users have nosedived from nearly 259,000 to a mere 8,000. It's like watching a crowd leave a concert mid-show!

So, even with all the buzz from artist collabs, it looks like user engagement and developer activity on Zora are fizzling out. Not a good sign, folks!

ZORA Price Analysis: Brace Yourself!

On the 4-hour chart, ZORA just busted out of a descending trendline that's been holding it back since May 26. That's what kicked off this latest price bounce. But zoom out, and things get dicey.

ZORA's formed a double-top pattern near the $0.013 level, with peaks on May 11 and May 26. That's textbook bearish reversal territory, especially with momentum fading fast.

This token's flirting with a drop below its 20-day Exponential Moving Average, and the MACD is about to flip bearish with a crossover below the signal line. Plus, the Relative Strength Index is sliding down, hinting that buying pressure's running on fumes.

With the fundamentals weakening and the technicals flashing red, ZORA could be gearing up to test the $0.0090 support zone. That's been a solid floor since launch, but it's still a 15% drop from where we're at now. Hold onto your hats!

But hey, if the bulls can muscle back above the $0.012 resistance—that's also the 61.8% Fibonacci retracement level—the bearish party's over, and we might see another surge. Keep your eyes peeled!

Disclosure: This article's not your ticket to crypto riches. It's just here to school you up, so don't go betting the farm based on what you read here.