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.

#Zama #FHE #zaman #FHEUSTD #ZAMAUSDT #Crypto #Trading #Binance #TokenSale #TechnicalAnalysis

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Disclaimer: This is not financial advice. Do your own research. Trading futures is high risk.