The Polyhedra Network token (ZKJ) has started to recover after a sharp drop of over 87% on Sunday. This article discusses the reasons for the incident and the current market state.
Price Recovery of Polyhedra Network Token
The Polyhedra Network token is trading at $0.374, up 47% from its lowest point this week. The market capitalization of the token stands at $101 million, significantly below last week’s peak of $620 million.
Causes of Price Decline
Polyhedra Network attributed the crashing prices in a post on X to a series of abnormal transactions within the ZKJ/KOGE trading pair over a short time frame. Binance also pointed to large holders pulling liquidity from the market, amounting to around $7 million. According to a Bitunix analyst, "on-chain analysis revealed that three major wallets executed a coordinated 'liquidity pull + targeted dump,' leading to the price crash."
Technical Analysis of ZKJ Cryptocurrency
Technical charts indicate that the ZKJ price may form either a rectangle or triangle pattern as it consolidates, potentially indicating further downside. There are signs of a bearish flag or pennant formation, which may lead to testing the support level at $0.20.
The current situation with the Polyhedra Network token raises questions about future price dynamics. Following the recent sharp decline and subsequent recovery, market observers remain cautious in anticipation of further signals.
