ZORA surges 790% as Open Interest jumps $105.53M, but 60% correction looms

ZORA, a memecoin that has surged 790% over four weeks, experienced a 36% price jump on July 27, coinciding with a $105.53 million spike in Open Interest over two days. This derivatives activity, coupled with a shift in spot market sentiment, highlights growing bullish momentum. According to CoinGlass data, ZORA’s Open Interest ballooned from $34.30 million to $139.83 million by July 28, driven largely by increased derivative market inflows. Meanwhile, spot outflows, which peaked at $9.41 million between July 26–27, fell to $657.86K by July 28, suggesting rising retail participation [1].

The rally gained further momentum following Binance’s introduction of 50x leverage for the ZORA/USDT pair, which triggered a $230 million volume surge. This move amplified short-term optimism, as major exchanges like Bybit and MEXC showed a Long/Short Ratio favoring buyers. However, exchange data revealed a mixed landscape: platforms such as Bitget and Hyperliquid reported over 50% of takers positioned long, while Gate.io and Bitunix leaned bearish, indicating diverging market views [1].

Despite these bullish signs, AMBCrypto’s technical analysis of ZORA’s liquidity clusters and chart patterns raises caution. The price’s push above $0.08 has created a demand zone that could act as a “bull trap,” luring buyers before a potential 70% correction. This scenario is supported by Fair Value Gap (FVG) analysis on TradingView. The first FVG, between $0.069 and $0.065, could mark a 40% decline if the price falls from its recent high. A subsequent drop to the $0.029–$0.035 FVG range could trigger a 66–70% correction. Historical Fibonacci Retracement levels also suggest a 60% pullback could align with key support, potentially acting as a catalyst for a rebound [1].

While derivatives inflows and spot buying indicate short-term strength, the interplay of leverage-driven volume and technical indicators highlights market fragility. Analysts note that such patterns often precede sharp reversals in volatile assets, particularly when liquidity inflows outpace fundamentals. The situation underscores the risks of speculative fervor in crypto markets, where rapid price swings can quickly invert momentum.

Source: [1] [title1: Inside ZORA crypto’s 790% run: 3 signals hint at a 60% correction] [url1: https://ambcrypto.com/inside-zora-cryptos-790-run-3-signals-hint-at-a-60-correction/]