After exploding +1150% in just 20 days and completing all 5 waves, ZORA is now consolidating — trading sideways just under the $0.10 psychological level for the past 4 days.
📉 Current Market Structure
The current structure shows signs of a developing Head & Shoulders pattern, with price:
🔴 Short Setup - Bearish Scenario
If ZORA breaks below pdOpen, we’re likely heading for:
This zone marks the next high-probability reaction point and a potential long opportunity if price shows a bounce or reversal.
📉 Overall Short Trade Target
The full retracement target sits between $0.0529 and $0.0514, offering multiple layers of confluence:
This makes it an ideal demand zone for patient bulls but only once price confirms.
💡 Educational Insight
This setup highlights an example of Elliott Wave Theory in action — after a strong 5-wave impulse move, markets often enter a corrective phase. The completion of wave 5, especially near key psychological levels like $0.10, often marks a local top, where price corrects toward key Fibonacci retracement zones.
Combining wave structure with confluence factors like Fib levels, VWAP, and prior trading ranges helps traders identify high-probability reversal zones — allowing for better timing, risk management, and trade planning. Always wait for confirmation before jumping into any trades.
Summary
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📉 Current Market Structure
The current structure shows signs of a developing Head & Shoulders pattern, with price:
- Trading below the daily open (dOpen) and weekly open (wOpen) → Bearish signs
- Hovering near the prior daily open (pdOpen) → a breakdown here would confirm bearish continuation
🔴 Short Setup - Bearish Scenario
If ZORA breaks below pdOpen, we’re likely heading for:
- 0.618 Fib retracement at $0.06137 of the final wave 5
- Confluence with 1.272 Trend-Based Fib Extension (TBFE) at $0.06148
This zone marks the next high-probability reaction point and a potential long opportunity if price shows a bounce or reversal.
📉 Overall Short Trade Target
The full retracement target sits between $0.0529 and $0.0514, offering multiple layers of confluence:
- 0.5 Fib retracement of the full 1150% move
- 0.786 Fib retracement of the final wave 5
- Aligned with an old trading range and daily level
This makes it an ideal demand zone for patient bulls but only once price confirms.
💡 Educational Insight
This setup highlights an example of Elliott Wave Theory in action — after a strong 5-wave impulse move, markets often enter a corrective phase. The completion of wave 5, especially near key psychological levels like $0.10, often marks a local top, where price corrects toward key Fibonacci retracement zones.
Combining wave structure with confluence factors like Fib levels, VWAP, and prior trading ranges helps traders identify high-probability reversal zones — allowing for better timing, risk management, and trade planning. Always wait for confirmation before jumping into any trades.
Summary
- Bearish continuation confirmed on pdOpen breakdown
- First support zone: $0.0613–$0.0614
- Final downside target: $0.0529–$0.0514
- Look for long opportunities only on reaction + confirmation
_________________________________
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Trade closed: target reached
TP hit, the short trade played out nicely.I’m still expecting further downside from here.
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🏆 Mastering Fibonacci for precision trading
🔹 Sharing high-probability trade setups
⚡ Unlock the power of technical analysis!
🔹 Sharing high-probability trade setups
⚡ Unlock the power of technical analysis!
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.