ZKsync Cancels Second Season of Incentive Program Amid 19% ZK Token Drop
ZKsync, a Layer-2 solution for Ethereum, has canceled its Ignite incentive program, effective March 17, 2025. This decision has led to a 19% decline in the ZK token price over the past week.
Cancellation of Ignite Season 2
Key points regarding the cancellation:
- The DeFi Steering Committee decided not to renew Ignite for Season 2.
- The focus will shift towards the Elastic Network for scalability and interoperability.
- Continuing Ignite would divert resources from this long-term goal.
- Current bearish market conditions necessitate tighter spending.
ZK Price Analysis
The ZK token is currently priced at $0.06946, down 19% in one week and 1% in the last 24 hours. Key technical indicators include:
- Relative Strength Index (RSI) at 33.56, close to the oversold threshold.
- Trading near support at $0.0594.
- Immediate resistance at the SMA 20 level of $0.0854.
If ZK fails to recover above $0.07, it may test the $0.059-$0.060 support zone. A reclaim above $0.0854 could indicate a potential recovery, while breaking the $0.10 level might signal renewed bullish momentum targeting $0.1115.