ZRC surges over 19% on Bithumb listing, can the rally hold?

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The Ethereum layer-2 token, ZRC (Zircuit), saw a surge of approximately 19% following its debut on a well-known centralized trading platform.

On January 13th, the value of Zircuit (ZRC) surged to $0.079, representing a significant increase of 24.8% from its lowest point of the week at $0.063. This surge boosted the coin’s market capitalization to more than $160 million as of the time of reporting. The price surge was accompanied by an increase in the altcoin’s daily trading volume, which rose by approximately 69% from around $32 million early Monday morning to over $56.8 million.

Monday saw a surge in ZRC’s value, which was triggered by Bithumb, a prominent South Korean cryptocurrency exchange, revealing their intention to include ZRC in their platform’s offerings, available for trading with the Korean Won (KRW) from January 13.

Cryptocurrencies listed on well-known platforms like Upbit and Bithumb frequently see significant price increases. Yet, it’s crucial to remember that prices can drop following such listings because investors often sell their holdings immediately after the good news (the listing) has been announced, a phenomenon known as “selling the news.

An example can be found in the SAFE token of Safe Wallet, which experienced a 20% increase prior to being listed on Bithumb on January 10, as previously reported by crypto.news. However, since then, the altcoin has largely reverted its gains and is currently 15.8% lower than its peak reached on the day of the announcement.

The listing also positioned ZRC as a top trending token on CoinGecko.

The increased popularity of ZRC’s recent rally can be attributed to a significant rise in interest among traders dealing with derivatives. As per CoinGlass data, the open interest for ZRC futures jumped by approximately 115% within the last day, reaching an impressive $10.98 million – a stark contrast to the $981k recorded just in January.

As a crypto investor, I’ve noticed an increasing curiosity around ZRC due to its remarkable expansion within the DeFi sector. According to DeFiLlama, the total value locked in Zircuit has skyrocketed to a staggering $725 million at this moment, significantly outpacing the $256 million recorded at the end of 2024. The majority of this TVL is currently being held within its staking protocol.

An increasing number of traders seem to be transferring their assets to trading platforms, which could lead to increased selling and possibly undo the recent price increases. According to CoinGlass statistics, more than $3.35 million in ZRC was deposited onto centralized exchanges on January 13, while only about $3.28 million was withdrawn from them that day.

Indeed, the value of ZRC has significantly dropped after it had reached a peak of $0.6994, currently standing at a decrease of 12.4%.

Will ZRC continue its rally?

According to various technical indicators, it seems that ZRC may be preparing to continue its upward movement. On the daily chart, the price of ZRC has surpassed the middle Bollinger Band at around $0.71, which could suggest a return to a bullish trend. Additionally, the Moving Average Convergence Divergence (MACD) indicator aligns with this viewpoint, as the MACD line is currently pointing upwards and appears ready to cross above the signal line, which is often interpreted as a sign of a bullish reversal in technical analysis.

In other words, there’s a possibility that the ZRC token might try to surmount the significant resistance level of $0.8 again, a hurdle it found challenging in late December. But if pessimism persists, its price may dip towards the supportive level of $0.064.

Currently, the cryptocurrency is 24.4% lower than its peak value of $0.097, which was set in November of the previous year.

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2025-01-13 14:52