Market Overview: ZKCUSDC on 2025-10-13

• Boundless/USDC (ZKCUSDC) surged over 35% in the 24-hour period, forming a bullish breakout pattern above prior resistance.
• Momentum accelerated during the session as RSI surged toward overbought territory, suggesting strong short-term buying pressure.
• Volatility expanded sharply, with Bollinger Bands widening in response to the rapid price move and heavy volume spikes.
• Volume confirmed the price action, with a significant increase in notional turnover during the key upswing.
• A bullish continuation appears probable unless buyers retest key support levels in the coming 24 hours.

Price Action and Volume Profile

Boundless/USDC (ZKCUSDC) opened at 0.1839 on 2025-10-13 and surged to a high of 0.2555 by midday, closing at 0.2087 as of 12:00 ET. The pair traded within a volatile range, with a low of 0.1830 earlier in the day. Total volume for the 24-hour period reached 17,850,497.1, with total notional turnover amounting to $3,546,625. The price action reflected a strong bearish correction followed by a powerful bullish breakout, indicating potential shift in sentiment.

The candlestick pattern showed a morning star formation during the early part of the session, followed by a strong bullish engulfing pattern as the price surged past key resistance. A long lower shadow during the correction phase highlighted strong support at 0.2057, while the subsequent rally suggested accumulation from aggressive buyers.

Moving Averages and Key Levels

The 20-period and 50-period moving averages on the 15-minute chart crossed into bullish territory during the late afternoon and evening hours, reinforcing the upward bias. The 50-period SMA crossed above the 20-period SMA, forming a golden cross. On the daily chart, the 50-period and 100-period moving averages appear to be converging toward critical psychological levels around 0.2100-0.2150, suggesting these could act as either support or resistance in the short term.

Key resistance levels identified include 0.2200 (tested and broken), 0.2280 (prior consolidation), and 0.2350 (projected extension), while critical support levels lie at 0.2110, 0.2057, and 0.2000. A breakdown below 0.2057 could expose deeper support at 0.1950, triggering further technical sell-offs.

Momentum and Volatility Indicators

Relative Strength Index (RSI) surged to overbought territory above 70 during the midday and afternoon rally, indicating strong momentum and potential for a short-term correction or consolidation. However, the RSI remained above 50, suggesting bullish continuation remains likely unless the index retests and fails below key support.

Bollinger Bands expanded significantly during the bullish surge, with the price reaching the upper band and testing it multiple times before consolidating near the middle band. This expansion in volatility confirms the strong move but also signals potential for a pullback to the 0.2100-0.2130 range in the coming session.

Volume and Turnover Analysis

The most significant volume spike occurred during the 15-minute candle at 16:30 ET, where volume reached 3,760,128.2 as the price surged from 0.1898 to 0.2335. This level was confirmed with strong follow-through volume in the subsequent hours, reinforcing the bullish breakout. However, during the late-night consolidation phase, volume declined, indicating a potential lack of follow-through buying.

Notional turnover also spiked during the midday rally and remained elevated during the evening session. The lack of divergence between price and volume during this rally suggests strong conviction among buyers. However, the declining volume during the consolidation phase raises a potential flag for a temporary correction or pullback in the near term.

Backtest Hypothesis

The technical indicators discussed—particularly RSI and moving averages—provide a solid foundation for constructing a backtesting strategy. A plausible hypothesis for backtesting would involve entering long positions when the 20-period moving average crosses above the 50-period moving average on the 15-minute chart, and exiting when RSI falls back below 50. This would aim to capture short-term bullish momentum during volatile moves, such as the surge seen in ZKCUSDC.

To run a backtest, we would need to specify the asset or assets to test and the exact exit rule. For example, if testing this strategy on ZKCUSDC, one could evaluate performance from 2022-01-01 to today. Common exit rules include closing positions when RSI drops below 50, closing after a fixed number of days, or using a trailing stop-loss. Once the target asset and exit conditions are defined, a detailed backtest can be run to assess profitability and risk-adjusted returns.