Bitcoin (BTC) has rallied over the past month, but the altcoin’s market cap has grown less than Bitcoin’s. In other words, the altcoin market was relatively calm and only a few altcoins were performing remarkably well.
One of these altcoins was Zano (ZANO). In one week, ZANO prices surged 73% after the altcoin tested its long-term demand zone between $5.5 and $6.0. The bullish reaction from this region was not enough to reverse the long-term bearish outlook, but it did provide an opportunity for swing buyers.
The weekly chart showed that the range low at $5.9 caused a rapid bullish reaction over the past week. Interestingly, OBV was at the same multi-month low, dating back to September 2024.
In other words, over the long term, the buying and selling pressure on the altcoin has been fairly balanced. This added to the strength of the lineup and presented a good buying opportunity for long-term investors.
ZANO was very likely to reach the highs of $17.2 in the next 3-4 months. The last time the bottom of the range was tested was in March 2025. By September 2025, the altcoin had reached its highs.
Is it too late for traders to go long?
After an asset makes a strong trend-changing move, traders are faced with a vital question. Are they waiting for a pullback, or does the move have enough strength to continue without a significant retracement?
Retracements are a healthy part of the market, but they don’t always happen. Waiting for one could also mean you miss the next shot.
OBV and price made a significant divergence on the 4-hour time frame. At the same time, the IMF was in overbought territory. Together, they suggested that ZANO might be overextended in the short term.
The altcoin spent a lot of time trading in the $8.1 to $9.2 area. This made it a high-volume trading node that could act as support in the event of a retracement. Therefore, traders may wait for prices to drop in this region before looking to buy.
A decline below $8.1 will not invalidate the weekly range idea nor introduce a bearish H4 structure. Last week’s upward price action left significant imbalances and offered virtually no consolidation that marked key local support levels.
Final summary
- Zano fell to long-term lows and saw an immediate reaction, rallying 73% in one week.
- In the short term, a price decline between $8 and $9 may provide a buying opportunity. The explosive nature of price action in recent days may make it more difficult for bulls to take advantage of a decline to take long positions.
