The chart for cryptocurrency ZEN indicates the formation of a descending triangle on the daily chart with a support level around $7.25. This draws the attention of market participants as the price may move to a new level.
Descending Triangle Structure and Key Levels
ZEN has formed a descending triangle with lower highs and a support level near $7.25. The points B to D on the daily chart mark the declining highs. Points A and C show the horizontal support that has held multiple times. Descending triangles generally show pressure from sellers while buyers maintain a defined support zone. ZEN's repeated tests of $7.25 indicate buyers are defending this level. This pattern is attracting attention as the price narrows toward the apex.
Moving Averages and Volume Trends
The 9-day exponential moving average (EMA) sits at $7.58, with ZEN trading below it. This suggests short-term momentum favors sellers. The 50-day simple moving average (SMA) is around $8.25, further confirming medium-term weakness in the price action. Volume analysis shows a notable spike at point B, marking a previous bullish attempt to break higher. However, volume has tapered along the descending triangle, which is common as price consolidates.
Potential Breakout and Support Scenarios
ZEN sits at a 'make-or-break level' with heightened risk on the downside. A break below $7.25 could lead to a drop toward $6.0–$5.5, as sellers gain control. Conversely, if buyers defend the horizontal support and push above the descending trendline, the bearish setup would be invalidated. Such a move could open doors for a relief rally targeting $9–$10. Short-term momentum remains weak, with the price below EMA 9 and SMA 50. Traders may wait for a decisive candle close either above the trendline or below support to confirm the next likely direction for ZEN.
The overall situation on the ZEN chart requires attention to the support level at $7.25 and the trendline, as upcoming movements may significantly impact price direction.
