Polyhedra (ZKJ) Price’s 118% Recovery Erased, Yet Traders Stay Bullish
Polyhedra Network’s ZKJ token has seen a dramatic price crash following a liquidity attack, yet traders remain optimistic, anticipating a potential recovery supported by the network’s corrective measures.
Polyhedra Network, a promising project in the blockchain space, has experienced significant price volatility recently. After recovering 118% in value, the ZKJ token crashed by over 80%, leaving investors in shock and undermining confidence in the asset.
Despite the crash, some traders remain bullish, betting on a potential recovery as Polyhedra Network plans to take corrective action.
Polyhedra Network Was Attacked
The crash of ZKJ triggered over $97.4 million worth of long liquidations on Sunday, further exacerbating the situation. Polyhedra Network’s crash report highlighted that a liquidity attack caused the massive drop.
“Several key addresses executed a sequence of large liquidity withdrawals from the PancakeSwap ZKJ/KOGE V3 pool… We suspect the aforementioned addresses coordinated a liquidity attack with an egregious malicious attempt. These actions removed critical market depth, particularly in a pool with fragile, concentrated liquidity provisioning.”
ZKJ Liquidations. Source:
Coinglass
In response, the company’s co-founder stated that they would buy back ZKJ tokens to restore the token’s value and regain market confidence. This move shows Polyhedra Network’s commitment to stabilizing the token’s price and addressing liquidity issues.
Despite the crash, the market sentiment surrounding ZKJ remains relatively positive. Many traders are hopeful for a recovery, especially with the buyback plan in place. While the recent drop has shaken investor confidence, the backing of the network’s team is seen as a stabilizing force that could lead to an eventual rebound.
The liquidation map reveals a significant amount of bullish sentiment still surrounding ZKJ. Even after the price crash, traders are placing long positions, anticipating a bounce back. The liquidation map suggests that a drop to $0.30 would result in $4 million in long liquidations, indicating that many traders are confident that the price will recover from its current lows.
ZKJ Liquidation Map. Source:
Coinglass
While market conditions remain volatile, the willingness of traders to continue placing long contracts on ZKJ signals that they believe the token’s price will rise again.
ZKJ Price Has A Long Way To Go
ZKJ has already shown signs of volatility, experiencing a dramatic 118% surge on Monday, only to crash 42% today. The altcoin is currently trading at $0.40, still recovering from the 83% drop observed on Sunday. Traders who remain bullish believe that ZKJ will regain value in the coming weeks.
For ZKJ to continue its recovery, it will need to secure the $0.69 support level and break past the $1.00 resistance. This psychological threshold is critical, as flipping it into support would restore investor confidence and encourage further inflows into the token.
ZKJ Price Analysis. Source:
TradingView
However, if traders’ sentiment shifts in the coming days, ZKJ’s price could face difficulties in recovering. A sustained bearish outlook could push the altcoin below $0.31, making further declines a real possibility. Should the price continue to fall, it would signal a prolonged downturn, invalidating the bullish thesis. This would leave ZKJ vulnerable to more significant losses.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
The 10-year US Treasury yield approaches 5.4%, with the AI halo unable to hide the "inflated" risks of the S&P 500
Behind the S&P 500's record high, only 30% of its constituent stocks are above their 50-day moving average, marking the narrowest market breadth at a record high since 1990. The Russell 2000 has fallen for five consecutive weeks, and high-yield bond yields have soared to 15%. Societe Generale warns that if US Treasury yields rise to 6% and oil prices reach $150, the S&P 500 could fall by more than 20% next year. In addition, some top-performing fund managers have completely exited AI stocks in favor of energy, stating that once financing dries up, it will be "game over."
Oil tanker freight reaches a sixty-year high: shipping oil from the US to China is more expensive than launching a rocket!
The freight for a single barrel of crude oil has soared to $41, approaching half the oil price, and for a single trip, the freight was once enough to buy an oil tanker. The Middle East crisis has led to a structural shortage of shipping capacity in the Strait of Hormuz, coupled with ship-to-ship transfers extending turnaround times. VLCC freight rates have skyrocketed from an annual average of $9.2 million to $77 million—an increase of more than eight times. Refiners’ profits are being rapidly eroded, the average price of second-hand oil tankers has reached a historic high, and, unusually, surpassed the price of new vessels.
Following the Drop but Not the Rise! Silver Trapped in Difficulties
The logic of AI and solar energy demand continues to play out, yet prices are falling against the trend—macroeconomic forces such as a strengthening US dollar and rising real interest rates have completely suppressed fundamentals. Speculative funds offloaded $1.6 billion in a single week, marking a yearly peak, while CTA net short positions reversed by $2.6 billion to the highest level this year. However, Goldman Sachs analysts believe that the extreme short positioning itself is building reversal momentum, highlighting an asymmetry; once macro headwinds subside, a retaliatory rebound could be easily triggered. After a similar shakeout last time, silver surged 15% in six weeks.
Crypto prices
More
