Zora crypto price has gone parabolic and surged to a record high. It jumped to a high of $0.1050 today, July 28, up by over 1,100% from its lowest point in June. This surge has brought its market capitalization to nearly $300 million.
Why Zora Token Surged
Zora price surge started after it was mentioned in last week’s Coinbase event, in which the company launched The Base App (TBA). TBA is the replacement for the Coinbase wallet and is comprised of key features, including chat, payments, trading, and social.
Zora is a key part of the social media aspect as it allows users to monetize their social media posts. Analysts expect TBA to be a major disruptor, as it offers some of the most common features, particularly stablecoin payments.
The Zora token also surged after its launch on Binance Futures, allowing investors to trade it with 50x leverage. It is common for cryptocurrencies to experience a surge in value once they are listed on major exchanges.
At the same time, data shows that whales have continued to accumulate Zora tokens. Their holdings have jumped by 86% in the last 30 days to over 24 million.
Similarly, smart money investors hold 2.54 million tokens, up by 177% in the last 30 days, while exchange balances plunged by nearly 10% to 4.49 billion.
Furthermore, the Zora token surged as its futures open interest increased to over $165 million, a record high.
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Zora Crypto Price Prediction
The daily chart shows that the Zora token went parabolic recently, jumping to a high of $0.1050 on Sunday. A closer look reveals that the token has crossed the important resistance level at $0.0250, the upper side of the cup-and-handle pattern, which has a depth of 70%.
Measuring the same distance from the cup’s upper side brings the price target to $0.0426. The token, however, has surged much higher than that level, as the fear of missing out (FOMO) has remained.
The risk, however, is that the Relative Strength Index (RSI) has jumped to the extreme overbought point of 90. It is common for highly overbought tokens to pull back over time.
Additionally, as we warned regarding the Spark price, the ZORA token has moved significantly higher than both the 25-day and 50-day moving averages. This means that the token may soon undergo a mean reversion, a situation where an asset returns to its historical averages.
In this case, there is a risk that the Zora price will plunge and retest the support at $0.025, which is 75% below the current level.
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