Polyhedra (ZKJ) plummet after a 118% increase but traders remain optimistic

Polyhedra Network (ZKJ) considered a potential project in the blockchain field, with prices fluctuating sharply in recent times.

After recovering to 118%, the ZKJ token has dropped more than 80%, leaving investors shocked and severely undermining confidence in the asset.

Despite the strong collapse, some traders remain optimistic, betting on the possibility of recovery in the future as Polyhedra Network is planning to implement remedial measures.

Polyhedra Network attacked

The plunge of ZKJ has resulted in over $97.4 million in Long position value being liquidated on Sunday, exacerbating the situation. A report from Polyhedra Network stated that the cause was a liquidity attack.

"Some key addresses have executed a series of large liquidity withdrawal orders from the PancakeSwap ZKJ/KOGE V3 pool... We suspect that these addresses are coordinating together to carry out a liquidity attack with serious malicious intent. This action has severely drained the market depth – especially in a pool that already has a concentrated liquidity structure and is susceptible to impact."

! ZKJ ZKJ Liquidation | Source: CoinglassIn response to the incident, the project's co-founder said that they will proceed with the purchase of the ZKJ token in order to restore the value of the asset and regain trust from the market. This move demonstrates Polyhedra Network's commitment to stabilizing token prices and handling liquidity issues.

Although the price has fallen sharply, market sentiment for ZKJ is still relatively positive. Many traders still expect a rebound, especially after the buyback plan is announced. Although the recent price decline has shaken investor confidence, the support from the project team is considered a stabilizing factor that can lead to the upcoming recovery.

The liquidation map shows that a large amount of Long positions are still being maintained around ZKJ – reflecting the optimistic sentiment of traders. Even after the price drop, many traders continue to hold Long positions, betting on the possibility of a rebound, indicating that recovery expectations remain high.

Data from the liquidation map also indicates that if the price drops to the $0.3 level, the market will see around $4 million liquidated in long positions – which shows that many traders are believing that the price will recover from the current bottom.

ZKJ liquidation map | Source: CoinglassDespite the market conditions still being quite volatile, the fact that traders continue to open Long ZKJ contracts shows that they believe the price will soon rise again.

The price of ZKJ still has a long way to go ahead.

ZKJ has clearly demonstrated high volatility, with a shocking increase of 118% on Monday, only to then drop sharply by 42% afterward. Currently, this altcoin is trading around $0.41, still in the process of recovering from the 83% crash last Sunday. Traders who remain optimistic believe that ZKJ will regain its value in the coming weeks.

For ZKJ to continue its recovery process, the price needs to maintain the support level of $0.69 and break through the resistance level of $1. This is an important psychological barrier, as if it is flipped to a support area, it will help restore investor confidence and attract new capital into this token.

ZKJ Price Chart | Source: TradingViewHowever, if trader sentiment changes in the coming days, the price of ZKJ may face difficulties in the recovery process. If the negative trend continues, this altcoin may drop below the $0.31 mark, making the possibility of further decline a realistic scenario.

If the price continues to drop, it will signal a prolonged downturn, negating the previous bullish argument and making ZKJ vulnerable to larger losses.

Minh Anh