ZK/USDT — Testing Long-Term Downtrend: Breakout or Rejection at?Summary
The daily chart shows a clear long-term downtrend from the previous highs — the descending trendline (yellow) has been capping price action, forming a sequence of lower highs and lower lows. Currently, price is hovering around 0.0591 USDT, testing both the trendline resistance and a key horizontal resistance at ~0.06173 (red dashed). Since the low at ~0.0366 (June), the market has been slowly forming higher lows, suggesting potential accumulation, but the main downtrend structure is still intact until a confirmed breakout occurs.
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Pattern Overview
Descending trendline (yellow) = downtrend structure remains valid until a daily close above it.
Accumulation signs from the 0.0366 low → forming several higher lows.
Key resistance: 0.06173 (decision zone).
Next resistances (yellow dashed): 0.07999 → 0.11475 → 0.15566 → 0.22443 → 0.26273 → 0.27270.
Key support: ~0.042 (intermediate) → structural low at 0.03660.
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Bullish Scenario (confirmation needed)
1. Breakout confirmation: A daily close above the descending trendline and above 0.0617 with stronger-than-average volume.
2. Post-breakout behavior: Potential retest of the broken trendline as support — a conservative entry point.
3. Upside targets:
Target 1: 0.07999 (~+29% from 0.06173; ~+35% from current price 0.05907)
Target 2: 0.11475 (~+86% from 0.06173)
Extended targets: 0.15566 → 0.22443 → 0.26273 → 0.27270
4. Risk management: Initial stop-loss under retest zone or, for aggressive entries, just below breakout candle’s low.
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Bearish Scenario (rejection/failure)
1. Rejection at 0.0617 / trendline: If price fails to break and closes bearish with upper wicks, a pullback toward support is likely.
2. Support watch: ~0.042 (intermediate) → 0.03660 (structural low).
Downside from 0.0617: ~−29% to 0.042, ~−38% to 0.0366.
3. Further risk: A daily close below 0.0366 could trigger continuation of the major downtrend.
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Key Levels (Quick View)
Current: 0.05907
Breakout trigger: 0.06173
Targets: 0.07999, 0.11475, 0.15566, 0.22443, 0.26273, 0.27270
Supports: ~0.042 → 0.03660
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