ZAMA: Crash Before the Storm? Technical Analysis & Token Sale Impact
$ZAMAUSDT dropped 40%+ in 7 days. What happened? Is this the end or the beginning of an opportunity?
1. NEWS FACTS:
· Zama held its first token sale with FHE (Fully Homomorphic Encryption) on January 21-24, 2026.
· Auction base price: $0.005 per token (FDV $55 million).
· Current spot price: ~$0.061 (still 12x higher than the auction base price).
2. TECHNICAL ANALYSIS (PERPETUAL):
· All timeframes (15m, 1H, 4H, 1D) are in a strong BEARISH trend.
· Price is below all EMAs (7, 25, 99).
· RSI is extremely oversold (<10 on TF 4H).
· High selling volume, negative CVD.
3. WHY IS IT DROPPING?
The market is "price in" a significant difference between the spot price ($0.061) and the auction price ($0.005). Investors are waiting for a chance to buy cheaper through public auctions.
4. OPPORTUNITIES & STRATEGY:
SHORT (High Probability):
· Entry: $0.063–0.067 (rejection EMA) or breakdown $0.0567.
· Target: $0.050–0.048.
· Stop Loss: >$0.0705.
· Duration: 1-2 weeks ahead.
LONG (Wait for Confirmation):
· Wait for base formation after February 2 (token claim).
· Confirm reversal if the price breaks $0.070 with high volume.
5. RISK NOTES:
· Extreme volatility will continue until the auction is completed.
· Monitor: Auction results (January 24) & token claim (February 2).
6. CONCLUSION:
This is not the end for Zama, but a healthy correction phase before potential accumulation. Focus on SHORT near resistance, or wait for accumulation signals for medium-term LONG.
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Disclaimer: This is not financial advice. Do your own research. Trading futures is high risk.