Bitcoin (BTC) rebounded last month, but the altcoin market cap grew less than Bitcoin. In other words, the altcoin market was relatively calm, with only a few altcoins performing quite well.
One such altcoin was Zano (ZANO). ZANO prices rose 73% in a week after the altcoin tested the long-term demand zone in the $5.5-6.0 range. The bullish reaction from this area was not enough to reverse the long-term bearish trend, but it did present an opportunity for swing buyers.
The weekly chart showed that the $5.9 low range led to a rapid bullish reaction last week. Interestingly, OBV was at its lowest level in the same months leading up to September 2024.
In other words, the buying and selling pressure on the altcoin is quite balanced in the long term. This reinforced the strength of the range and presented a good buying opportunity for long-term investors.
It was highly likely that ZANO would rise to the highs of the $17.2 range in the next 3-4 months. The low range was last tested in March 2025. By September 2025, the altcoin had reached its highest range.
Is it too late for investors to look for long positions?
After an asset makes a strong, trend-changing move, investors face a vital question. Are they expecting a pullback, or does the movement have enough strength to continue without a major pullback?
Pullbacks are a healthy part of the market but they don’t happen all the time. Waiting for one may also mean you miss the next move.
OBV and price made a huge difference in the 4 hour time frame. At the same time, MFI was in overbought territory. Together they suggested that ZANO could become overextended in the short term.
The altcoin spent a significant amount of time trading in the $8.1-9.2 range. This has made it a high-volume trading node that will act as support in the event of a pullback. Therefore, traders can wait for prices to drop in this area before buying.
A decline below $8.1 will neither invalidate the weekly range idea nor reveal a bearish H4 structure. Last week’s purely upward price action left large imbalances and offered almost no consolidation highlighting important local support levels.
Final Summary
- Zano fell to long-term lows and saw an immediate reaction, rising 73% in a week.
- In the short term, a drop in price to $8-9 may present a buying opportunity. The explosive nature of price action in recent days could make it difficult for bulls to take advantage of a decline to take long positions.
