ZORA price targets 39% upside after falling wedge breakout

ZORA price soared following its listing on Robinhood while confirming a breakout from a bullish reversal pattern that points to further gains ahead.

According to data from crypto.news, Zora (ZORA) rallied 75% to an intraday high of $0.091 on Oct. 10 morning Asian time, before giving up some of its gains and settling at $0.082 at press time. At this price, the token stands over 900% higher than its year-to-date low.

The token rally came amid a sharp surge in investor demand, reflected by its daily trading volume spiking over 650% to $420 million, surpassing its market cap, which hovered around $370 million at the time of writing.

The main catalyst that drove ZORA price gains today appears to be its fresh listing on the popular trading app Robinhood. The move opens the door for a much wider pool of retail traders to access the token while adding greater visibility for the token, potentially smoothing out volatility and driving price stability over time.

Notably, this is Zora’s most significant exchange listing since July, when it made its debut on Binance Futures. The Robinhood listing also follows a wave of renewed activity across Zora’s social channels and growing momentum on its creator-focused blockchain, fueled in part by speculation that Coinbase may soon launch a token for its Base network. As one of the leading social tokens on Base, driving significant NFT activity and trading volume on the network, Zora is catching additional attention from that buzz.

The renewed demand from retail investors seems to be further amplified by fresh whale buying. According to data from Nansen, the amount of ZORA tokens held by whale wallets jumped sharply from 6.34 million to 8.72 million right after the Robinhood listing news broke out. Such a spike in accumulation signals growing confidence among large holders and could even prompt retail traders to follow suit.

Interestingly, Zora was also the top trending token on Google Trends at the time of writing, hinting that such retail interest has already built significant momentum and could continue to drive price action over the coming days.

However, there’s one potential headwind for ZORA token as nearly 166.67 million ZORA tokens are scheduled to unlock later this month. If selling pressure builds around the unlock, it may temporarily weigh on the token’s price, even if the longer-term outlook remains positive.

On the daily chart, ZORA price has been carving out a falling wedge pattern since early August this year. This type of pattern typically forms when an asset’s price is making lower highs and lower lows within converging trendlines, and a breakout from the upper trendline often signals a bullish reversal.

That’s exactly what happened as ZORA confirmed a breakout above the wedge’s upper trendline, fueled by the news of its listing on Robinhood.

ZORA price is also trading above its 20-day exponential moving average, another positive technical signal that suggests the short-term trend remains upward.

Another indicator flashing strength is the Aroon indicator, a tool often used by traders to identify trend changes and strength. At the time of writing, Aroon Up stands at 100% while Aroon Down is at just 28.57%, a classic signal that a strong uptrend is currently in play.

That said, it’s worth noting that the Relative Strength Index is approaching overbought territory, which could hint at a potential short-term pullback or consolidation before the next leg higher.

For now, the next key target for ZORA sits at $0.115. This level is calculated by measuring the height of the wedge formed and projecting it, adding it to the breakout point. The target lies 40% above the current price level.

A drop below $0.063, which aligns with the 20-day EMA, would invalidate the bullish setup and point to further downside risk.