- The rally followed the asset’s exit from a consolidation channel, where it had been trading for several days.
- Currently, a strong support level on the chart suggests that ZEREBRO could climb even higher, potentially reaching $0.80 or more.
ZEREBRO has shown an impressive upward trajectory, gaining 67.92% over the past month and another 35.90% over the past 24 hours. Currently, its market capitalization stands at $541.6 million.
While these gains may suggest that ZEREBRO is nearing its peak and could reverse course, AMBCrypto’s analysis indicates that the asset remains bullish, with room for further upside.
Is ZEREBRO poised for further gains?
ZEREBRO’s recent rally stems from the asset’s exit from a major consolidation channel that persisted for weeks starting in November, propelling it higher on the charts.
Typically, this breakout signals a push towards a high of $0.64, but the asset is currently slowing down to $0.55. The analysis suggests two possible paths for ZEREBRO: reaching the high of $0.64 or climbing to the range of $0.80 to $1.
In the latter scenario, shown in the attached chart, ZEREBRO should first return to a support level at $0.497. A rebound from this level could then push the asset towards $1, potentially increasing its market capitalization beyond $1 billion.
Source: TradingView
To assess the likelihood of sustained bullish momentum, AMBCrypto analyzed key technical indicators, which confirmed that the bulls remain active.
Growing accumulation could drive ZEREBRO higher
At the time of writing, ZEREBRO’s Accumulation/Distribution (A/D) indicator was showing an accumulation phase, confirmed by an ascending trendline.
The A/D indicator combines price and volume to gauge market direction. When it tends to rise alongside price action, as seen here, it suggests strong demand for the asset.
Source: TradingView
To confirm the directional bias, the average directional index (ADX) was analyzed. The ADX measures the strength of a price trend.
When the price of an asset tends to rise alongside the rise of the ADX, it indicates strong bullish momentum. For ZEREBRO, an ADX reading of 42.62 reinforces this bullish outlook, suggesting that the asset could rise further from its current price.
On-chain metrics also align with this trend, showing increased activity among derivatives traders in the market.
Derivatives traders are long
ZEREBRO has seen an increase in long contracts in the derivatives market. At the time of writing, the funding rate stands at 0.0320%, reflecting increased bullish sentiment among traders.
A rise in the funding rate generally indicates a bull market, as long traders (longs) are willing to pay a premium to maintain their positions.
Source: Coinglass
This shows confidence in ZEREBRO’s upward momentum, with traders covering the price difference between the spot and futures markets.
If this trend continues, ZEREBRO could either see a brief decline before a significant rally or head straight to a new all-time high.
