ZEN Solidifies Within Descending Triangle as $7.25 Support Remains Resilient

ZEN Price Analysis

• Descending Triangle Formation: ZEN has established a descending triangle pattern characterized by lower highs and a critical support level at $7.25. This structure indicates a potential inflection point for price movement, as the price has tested this support multiple times.

• Market Momentum: The short-term momentum is currently weak, with ZEN trading below the 9-day exponential moving average (EMA) of $7.58 and the 50-day simple moving average (SMA) of $8.25. This suggests ongoing selling pressure in the medium term.

Volume Trends and Market Sentiment

• Volume Behavior: Trading volume has decreased near the support level, which is typical during price consolidation. A notable spike in volume was observed during a previous bullish attempt, but the tapering volume indicates that a significant price movement—either a breakout or breakdown—could occur soon.

• Resistance Levels: The resistance is identified along the descending trendline, approximately between $8.0 and $8.5. ZEN has faced multiple rejections at this trendline, making it a critical area for traders to monitor for potential upside.

Breakout and Support Scenarios

• Critical Support Level: ZEN is at a "make-or-break level" with a heightened risk of falling below $7.25. A breach of this support could lead to a decline towards the $6.0–$5.5 range, indicating increased seller control.

• Potential for Recovery: If buyers manage to defend the $7.25 support and push the price above the descending trendline, it could invalidate the bearish setup. This scenario may open the door for a relief rally targeting price levels between $9 and $10.

• Decisive Movements: Traders are advised to wait for a decisive candle close either above the trendline or below the support level to confirm the next likely direction for ZEN.