ZKJ price rose by 20%: Is this a Dead Cat Bounce?
Gate News bot message, Bitunix analysts pointed out in a report that confidence in Polyhedra Network (ZKJ) has collapsed - the possibility of a rebound is slim without a significant inflow of funds. Stop wash trading or arbitrage strategies, and remain vigilant towards tokens with high FDV, suspiciously stable prices, or abnormal rankings.
He pointed out that on-chain analysis shows that three major wallets collaborated to execute a “liquidity pull + targeted sell-off” strategy, which first led to the collapse of KOGE and then triggered the collapse of ZKJ—typical bull market traps. Prior to this, warning signals had already appeared: liquidity providers (LP) withdrawing funds, annualized yield (APY) plummeting, and a decrease in wash trading.
From a technical perspective, the price of ZKJ may form a rectangle or triangle pattern during the consolidation process, potentially forming a bearish flag or triangle flag. The triangle flag or flag pattern indicates further decline, possibly dropping to the support level of 0.20 dollars.
(Source: Crypto.news)
