Zano [ZANO] digital currency achieved a record high price in late August, surpassing its previous peak of $4.18 back in October 2021.
Since then, the token has continued its upward trajectory, reaching a new high of $13.68 on December 10th on the MEXC exchange.
Despite a slight retracement of nearly 9.3% after hitting this milestone, the bullish trend has remained robust.
Various Fibonacci retracement levels have been analyzed, indicating ongoing market uncertainties and the need for traders to remain vigilant.
Zano has been actively traded since 2020. The blockchain platform, known for its focus on privacy, has weathered market downturns and exhibited significant growth in recent months. Nevertheless, its market capitalization still hovers around $167.57 million as of the latest data.
Indications from the OBV Point towards Caution
ZANO cryptocurrency continues to display a strong bullish trend, with the daily Relative Strength Index (RSI) having consistently maintained above the 80 threshold since December 8th. This signifies a strong bullish momentum.
Moreover, trading volumes have remained above average since December 5th, indicating positive market sentiment.
However, the On-Balance Volume (OBV) has not exceeded the previous highs set in October and failed to establish new ones, despite the token’s price surge of nearly 100%. This discrepancy serves as a cautionary signal for traders, urging them to consider securing their profits.
The recent spike in trading activity, coupled with the Continuous Money Flow (CMF) indicator staying consistently below +0.05 since October, suggests a possible unsustainable nature of the uptrend, contrasting the market’s robust performance.
While further gains are conceivable, it is advisable for both traders and investors to safeguard their profits and scale back exposure to ZANO cryptocurrency.
On the other hand, more risk-tolerant traders may target the next bullish thresholds at $15.51 and $18.47, keeping an eye on market dynamics for potential opportunities.
Disclaimer: The opinions expressed in this article do not serve as financial, investment, or trading advice, and solely reflect the author’s viewpoint.