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 of Coinbase wallet, and is made up 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 that TBA will be a major disruptor as it has some of the most common features, especially stablecoin payments.
Zora token also surged after it was launched on Binance Futures, allowing investors to trade it with 50x leverage. It is common for cryptocurrencies to surge once listed by 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.
Further, the Zora token jumped as its futures open interest jumped to over $165 million, a record high.
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Zora Crypto Price Prediction
Zora token price chart | Source: TradingView
The daily chart shows that the Zora token went parabolic recently, jumping to a high of $0.1050 on Sunday. A closer look shows that the token crossed the important resistance level at $0.0250, the upper side of the cup-and-handle pattern, whose depth was 70%.
Measuring the same distance from the cup’s upper side brings the price target at $0.0426. The token, however, has surged much higher than that level as the fear of missing out (FOMO) remained.
The risk, however, as 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.
Also, as we warned on the Spark price, the token has moved much higher than the 25-day and 50-day moving average. This means that the token may soon go through a mean reversion, a situation where an asset moves back to its historical averages.
In this case, there is a risk that the Zora price will plunge and retest the support at $0.025, down by 75% from the current level.
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