ZRO Technical Analysis Feb 6

ZRO is showing strong downward momentum; while RSI at the 37.88 level reflects selling pressure, MACD’s negative histogram and position below EMA20 strengthen the bearish trend. The increase in volume indicates that this momentum has volume confirmation, but news like the Robinhood listing has not yet recovered the price.

Trend Status and Momentum Analysis

ZRO’s current trend is clearly moving in a downward direction, declining to the $1.46 level with a 14.46% loss in the last 24 hours. The daily range is squeezed between $1.36-$1.73 and volume at $135.40 million confirms the decline. Momentum indicators emphasize short-term bearish dominance: Supertrend gives a bearish signal and $2.05 resistance forms a strong barrier. In multi-timeframe (MTF) confluence, a total of 15 strong levels were detected across 1D, 3D, and 1W timeframes; 2 supports/3 resistances in 1D, 1 support/3 resistances in 3D, and 3 supports/3 resistances in 1W. This indicates that overall trend strength is weak and requires volume support for potential base formation. The EMA ribbon is squeezed, short-term EMAs are sloping downward and positioned below the price, confirming that momentum is in the selling direction. Overall, the confluence of momentum oscillators favors bears, but RSI’s approaching oversold zone could be a notable weakening signal.

RSI Indicator: Buy or Sell?

RSI Divergence Analysis

RSI (14) is currently at 37.88, positioned in a neutral-bearish zone and indicating continued selling pressure. No regular bearish divergence is observed in recent price declines; as price makes new lows, RSI stays at similar levels, so the momentum decline is synchronized. However, there is a slight hidden bullish divergence potential on the 1D chart: While price tested $1.36, RSI held just above 30, which could increase the chance of a rebound from oversold. Still, remaining below the 50 level preserves the sell signal. Weekly RSI is around 45 and shows a decline consistent with the overall trend, with no divergence. This situation emphasizes that momentum has not yet reversed and selling remains dominant.

Overbought/Oversold Zones

RSI at 37.88 is approaching the oversold (below 30) zone, bringing short-term reaction buying potential into play. In the past, at similar levels (testing $1.36 support), RSI dropped to 28 and recovered, supported by volume increase. The current position is close to oversold but not yet triggered; dropping below 30 would give a strong oversold signal. The overbought side (above 70) is far off, with trend strength in the selling direction. In momentum confluence, RSI shows bearish bias consistent with MACD.

MACD Signals and Histogram Dynamics

MACD is bearish, with the signal line below the MACD line and histogram negative. Histogram bars have been widening recently, indicating accelerating downward momentum – consistent with the 14% drop in 24 hours. The signal line crossover has completed downward, and staying below the zero line is a strong bear signal. No histogram contraction on 1H and 4H; instead, negative momentum is increasing. In terms of divergence, MACD is at lower levels at price lows, bearish confluence. This volume-supported structure could increase pressure toward the $1.4287 support. For positive divergence, histogram zeroing and crossover should be awaited.

EMA Systems and Trend Strength

Short-Term EMAs

Price is below EMA20 ($1.75), confirming the short-term bearish trend. The ribbon between EMA10 and EMA20 is sloping downward, showing momentum weakness. Price approaching EMA20 could bring reaction buying, but it currently acts as resistance. In short-term trend strength measurement, EMA dynamics weigh 70% in favor of selling.

Medium/Long-Term EMA Supports

EMA50 around $1.90 acts as resistance, while EMA200 around $2.20 forms long-term support. The ribbon structure is in a bearish squeeze, with medium-term trend broken downward. For trend strength, EMA ribbon width has narrowed, signaling consolidation but with overall downward bias. Confluence with support levels: $1.4287 near EMA21, a strong hold point.

Bitcoin Correlation

BTC at $65,000 level with an 8.67% drop is in downtrend, Supertrend bearish. ZRO is highly correlated with BTC (0.85+), and BTC breaking $62,910 support could push ZRO to $1.36. If BTC resistances $65,881-$71,041 are overcome, an altcoin rally could come, but increasing dominance carries risk of altcoin-free movement. ZRO’s Robinhood spot listing (spot page) is positive, while leveraged selling in futures (futures page) increases pressure. If BTC drops below $60,000, $1.1670 target for ZRO is realistic.

Momentum Result and Expectations

Momentum indicators’ confluence is strongly bearish: RSI 37.88 approaching oversold, MACD negative expanding histogram, price below EMAs, and volume confirmation. Main supports $1.4287 (77/100), $1.1670 (71/100); break could lead to deeper decline. Resistances $1.6353 (84/100), $1.7985. Robinhood news could be a catalyst for recovery, but BTC downtrend dominates. For short-term reaction, monitor RSI below 30 and MACD histogram contraction; if trend strength stays in selling, $1.36 test is likely. Long-term, MTF support confluence could form a base. Momentum traders should maintain sell bias, seeking volume increase confluence.