Zora price up 600%, Binance Futures listing has 50x leverage

Zora price continued its strong bullish trend on Saturday and neared its all-time high after the Binance futures listing. 

Zora (ZORA) spiked to $0.054—up over 600% from its June low and just shy of its all-time high of $0.06293—bringing its market capitalization to $194 million. The rally followed Binance Futures’ decision to list the token with 50x leverage on Friday.

This is notable since Binance is the world’s largest cryptocurrency exchange. As a result, its 24-hour volume soared to over $230 million as demand jumped. 

It is common for cryptocurrencies to experience a parabolic rise after being listed by a major cryptocurrency exchange. For example, the Ethena price surged by 25% on July 11 after its listing on Upbit. 

Zora price jumped after its recent Base integration. It is now a key part of The Base App, a super app that offers numerous features, including payments, social media, and chat. 

Zora is a key part of the Base ecosystem as its platform allows users to tokenize their social media posts. Its market share may continue as the Base App becomes more popular. 

Meanwhile, there are indications that whales have begun purchasing Zora tokens. Their holdings have jumped from 5.49 million earlier this week to 6.83 million today. 

Similarly, smart money holdings have jumped by 23% in the last 30 days to 1.13 million, while exchange balances have been on a freefall, reaching a low of 4.55 billion. 

Zora price technical analysis

Technically, Zora price has jumped after it formed the highly bullish cup-and-handle pattern, whose upper side was at $0.025 and depth was 70%. 

The risk, however, is that the token has moved above its cup-and-handle pattern target at $0.042. It has also become highly overbought, with the Relative Strength Index jumping to 74. 

Additionally, Zora price is much higher than the 50-period Exponential Moving Average. While this is a bullish development, there is a risk that it will undergo a mean reversion, where an asset returns to its historical moving averages. 

Therefore, the token will likely pull back and possibly retest the upper side of the cup-and-handle pattern at $0.025. Such a move would be a 52% plunge from the current level.