ZORAUSDT Perpetual Contract
Short
Updated

ZORA 5-Wave Completion — 30% Crash Incoming?

450
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:
  • 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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