Boundless/USDC Market Overview: Strong Rally and Volatility Amid Key Resistance

• ZKCUSDC rallied from 0.5343 to a 24-hour high of 0.5833, closing at 0.5635 with significant volume in the latter half of the period.
• Momentum, as seen via RSI, surged into overbought territory before retreating, suggesting possible short-term exhaustion.
• Volatility expanded during the day with price breaking above key resistance levels, supported by rising turnover.
• A large bullish engulfing pattern formed near 0.54–0.56, indicating a shift in market sentiment toward the upside.
• Price found temporary support near 0.55, but the overall structure favors continued upward movement with clear resistance ahead.

Market Summary

The ZKCUSDC pair opened at 0.5345 on 2025-09-26 12:00 ET and closed at 0.5635 on 2025-09-27 12:00 ET. The 24-hour high was 0.5833, and the low was 0.5343. Total volume reached 738,292.4 with notional turnover of approximately $404,478.22. The pair saw a pronounced upward bias during the second half of the day, with large-volume moves pushing price above key psychological and Fibonacci resistance levels.

Structure & Formations

The price action formed a strong bullish engulfing pattern near the 0.54–0.56 range, followed by a series of higher highs and higher lows, forming a robust ascending structure. Key support levels include 0.550 and 0.543, with 0.556–0.563 as the immediate resistance cluster. A long-legged doji appeared at 0.5833, signaling a potential pause in the upward move. Fibonacci retracements on the 0.5343–0.5833 swing suggest potential corrections to 0.561 and 0.553 before testing 0.569 for a deeper extension.

Moving Averages and MACD/RSI

The 20-period and 50-period moving averages on the 15-minute chart are well below current price levels, indicating strong bullish momentum. MACD showed a wide positive divergence in the late hours of the session, followed by a narrowing as price approached 0.5833. RSI entered overbought territory above 70 in the final hours, suggesting a potential short-term pullback may be imminent. However, the overall trend remains bullish, with the RSI failing to close below 60 for most of the session.

Volatility and Bollinger Bands

Bollinger Bands expanded during the rally, with price frequently touching the upper band, especially between 0.56 and 0.583. Volatility was particularly pronounced in the 10:00–13:00 ET window, with several large-volume candles pushing price above the 0.57 level. The lower band currently sits near 0.545, offering potential support if the pair retraces.

Backtest Hypothesis

A potential backtest strategy could involve entering long positions on a close above the 50-period moving average on the 15-minute chart, with stop-loss placed just below the most recent swing low and a take-profit target set at the next Fibonacci extension level. Given the current momentum and structure, this setup may work well for short-term traders, especially if volume confirms the breakout.