Bitcoin [BTC] has rallied over the past month, but the altcoin market cap has grown less than that of Bitcoin. In other words, the altcoin market was relatively quiet, and only a few altcoins were performing remarkably well.
One such altcoin was Zano [ZANO]. In a week, ZANO prices have surged by 73% after the altcoin tested its long-term demand zone at $5.5-$6.0. The bullish reaction from this region was not enough to flip the long-term bearish outlook, but it did offer swing buyers an opportunity.
The weekly chart showed that the range lows at $5.9 prompted a swift bullish reaction over the past week. Interestingly, the OBV was at the same multi-month low, stretching back to September 2024.
In other words, over the long time horizons, buying and selling pressure on the altcoin has been quite balanced. This reinforced the strength of the range and presented a good buying opportunity for long-term investors.
It was highly likely that ZANO would rally to the range highs at $17.2 over the next 3-4 months. The last time the range low was tested was in March 2025. By September 2025, the altcoin had reached its range highs.
Is it too late for traders to look for long positions?
After an asset makes a strong, trend-changing move, traders are faced with a vital question. Do they wait for a pullback, or does the move have enough steam to continue without a sizeable retracement?
Retracements are a healthy part of the market, but do not always occur. Waiting for one could mean you miss the next move, too.
The OBV and the price made a sizeable divergence on the 4-hour timeframe. At the same time, the MFI was in overbought territory. Together, they suggested that ZANO might be overextended in the short-term.
The altcoin spent a considerable amount of time trading within the $8.1-$9.2 area. This made it a high-volume trading node that was likely to act as a support in case of a retracement. Therefore, traders can wait for a price dip into this region before looking to buy.
A drop below $8.1 will neither invalidate the weekly range idea nor introduce a bearish H4 structure. The up-only price action of the past week has left sizeable imbalances and offered hardly any consolidation that marked out key local support levels.
Final Summary
- Zano fell to the long-term range lows and saw an immediate reaction, rallying 73% in a week.
- In the short-term, a price dip to $8-$9 can offer a buying opportunity. The explosive nature of recent days’ price action can make it harder for bulls to use a dip to go long.
