Key Notes
- ZKsync has announced that it has cancelled the second season of its incentive program, Ignite.
- The project cited its focus on Elastic Network and bearish market conditions for dropping Ignite.
- ZK token has crashed a whopping 19% in the past week and faces resistance at the $0.0854 level .
ZKsync, a Layer-2 scaling solution for the Ethereum (ETH) blockchain, has recently announced the cancellation of the second season of its incentive program, Ignite.
This decision has sparked concerns within the crypto community, leading to a 19% decline in the price of the ZK token within a week.
The move comes at a time when the crypto market faces substantial bearish pressure while ZKsync has chosen to take a more cautious financial approach to ensure its long-term success.
Cancellation of Ignite Season 2
On March 14, 2025, ZKsync officially stated that it would be ending Ignite on March 17, 2025 , with no plans to introduce further incentives or rewards.
The announcement listed three key reasons for this decision with the first being ZKsync’s intention to focus on transition towards the Elastic Network, a scalable and interoperable blockchain system.
According to the project team, continuing Ignite would divert crucial resources away from this long-term vision involving Elastic Network.
The project stated that seamless native interoperability across the Elastic Network is taking longer than anticipated. As a result, adding more TVL without a robust interoperability mechanism would not yield optimal returns.
Finally, with the broader crypto market facing a bearish trend, ZKsync has chosen to tighten spending. The protocol said:
“Unfortunately we’re navigating a bearish market right now. In line with many other ecosystems, ZKsync has decided to be more conservative with spending in the short to medium term in response to these evolving conditions.”
ZK Price Analysis
The ZK token has experienced significant downward pressure, dropping to $0.06946, marking a 19% decline in the past week and a 1% decline in the last 24 hours, CoinMarketCap data shows .
A closer look at the daily chart shows that the Relative Strength Index (RSI) is currently at 33.56, close to the oversold threshold of 30. This suggests that ZK might be nearing a short-term rebound, provided buying pressure increases.
However, if RSI falls below 30, ZK may enter deeper bearish territory.
ZK is also currently trading near the support at lower Bollinger Band at $0.0594. The middle band (SMA 20) at $0.0854 acts as an immediate resistance level. Another resistance is at the upper band at $0.1115.
If ZK fails to recover above $0.07, further downside could lead to a test of the $0.059 – $0.060 support zone.
However, if ZK can reclaim the $0.0854 level, it may trigger a short-term recovery. Moreover, breaking above the $0.10 psychological level would indicate renewed bullish momentum, targeting $0.1115.
nextDisclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
