Last Update: September 26th, 2021

Zenon is an interesting project that has been garnering a lot of attention, not just for what it’s trying to achieve, but the way the entire project is going about it.

Zenon states that it is a dual-ledger architecture that aims at removing the entry barrier for developing high-performant decentralized applications by enabling a zero infrastructure platform with minimal setup and costs.

To put that in context, imagine if Bitcoin was fast, cheap and had the ability to offer smart contracts. In some ways, that is what Zenon (ZNN) is attempting to do.

ZNN is one of the tokens used as a staking reward along with QSR.

Interestingly, this is an anonymous project, in that we don’t know who created it or much about it. However, it is clear that the team behind the project do know what they’re doing and it has so far garnered quite a bit of interest.

As a result, the ZNN price saw a sharp move higher in Q1 of 2021, where it rose from around the $2.00 level, up to the most record highs of $24.50.

But, the surge didn’t last as long as in other major cryptocurrencies and ZNN/USD started retreating lower by the middle of March. That was a sign that trouble was on the way for Zenon and the crash in the crypto market added further to the bearish momentum. For the time being, the price Zenon is trying to make a bullish reversal but it lacks behind the crypto market in general. In fact, we only saw one proper bullish day in this crypto which took the price higher by the middle of August. However, there appears to be plenty of upside in this project and the current weakness might be a good opportunity to get into ZNN.

I think it is likely that we do see fresh highs, but in the short-term, we must watch the entire sector as in some ways, its use case is based around the likes of Bitcoin and therefore needs a strong market to gain momentum. Zenon has been showing increasingly signs of weakness and it is among the first to retreat lower when the crypto market turns bearish, so Zenon looks vulnerable in terms of price action.

Recent Changes in the Zenon (ZNN) Price

We’ve already seen quite a surge in the price of ZNN without knowing much about the team behind it. While it appears that it has lofty goals and a slick operation, there are still plenty of unknowns.

For me, it is always very wise to be cautious on projects that are anonymous in nature. In that, we don’t know who founded it or who is currently developing it. So you must proceed with caution, especially in such times when the banking establishment has opened a war on cryptos, which is keeping them bearish; however, there certainly is still upside potential here.

In the short term, we have to assume that as the market has reversed to bullish as we are currently witnessing, the price will come back and test the highs around the $24 level. But we might see a pullback before that, after the strong bullish run in the crypto market in the last month, which didn’t benefit Zenon too much.   

Assuming a clear regulatory environment for the crypto market as a whole, I think we will see a price rebound to the most recent highs at some point, with a five-year horizon of $100 certainly not out of the question.

Zenon (ZNN) –  The Anonymous Project

What is most interesting about Zenon is that we don’t know who started the project. However, we can infer that the team is both highly skilled and knowledgeable and, importantly, is very well funded.

Most projects start their life by way of a whitepaper, which is then used to raise funds for further development. This was not the case with Zenon. When it launched, it was already established, had wallets available on multiple platforms as well as content and a high-quality website, while the community is already clearly organised.

This is very unusual for any crypto project and suggests that there is someone (or a company) behind the project that is funding it and developing it. Interestingly, when it first launched, it did so by getting participants to send BTC and instead of leaving it locked up as with most new projects, the team sent it back. So effectively, they didn’t need any funding to run the project.

This should speak volumes about the people behind the project, especially in this current era of scam projects and memecoins that have no real value.

Zenon (ZNN)  – Making Bitcoin Useful

Zenon aims to be the “go-to” framework for developers researching better tools and environments and for users seeking superior utilization experiences. The network has lofty goals and we’ve already seen other layer one type projects do very well.

The flip side of this is that the ZNN price must be closely linked to the overall market, given that it is leveraging off many of them. Think Bitcoin in particular.

Zenon (ZNN) – Regulation Risks

The key risk of this project outside the fact that it is anonymous, which we’ve already discussed, is the pending regulation for the entire sector, which is part of this war that has been in the forefront for two months.

Being able to make Bitcoin more usable is not that important if the entire crypto space and BTC in particular are hit with regulation. That’s far more likely than not at this stage and we are continuing to hear plenty about it in recent times.

We don’t know what regulation might look like, but it could see limits on exchanges or even making  it outright illegal to buy and sell some digital assets. This is a risk to the sector as much as it is to Zenon. However, given that Zenon leverages different cryptos, it is clearly going to be at risk.

There is only a brief history that we can use on the technical front, but already we are seeing some clear level that has been established that we can base our trading decisions on. As mentioned, given the potential of the Zenon platform (Network of Momentum), ZNN turned bullish early this year and surged higher, following the extremely positive sentiment in the cryptocurrency market. 

The 20 SMA (gray) turned into support on the daily chart during Q1, as the price was climbing up, but the climb stopped earlier than in other cryptos for Zenon. The 20 SMA was eventually broken and the 50 SMA was acting as support until May, when the crash came for the crypto market and that moving average was broken as well. These two moving averages turned into resistance, as the price entered a downtrend and were pushing ZNN/USD down. They were broken as the price bounced up, but the bounce didn’t last and the 200 SMA (purple) turned into resistance. In the last several days, Zenon has retrated lower.

The 200 SMA has turned into resistance for Zenon

On the weekly chart, these same moving averages were also providing support, during 2020, but couldn’t catch up with the price after the surge during the first three months of 2021. The 20 SMA was broken during the crash lower, which followed the reversal in May, but the 50 SMA (yellow) held as support, aided by the 100 SMA (green) as well. The decline stalled for about a month for Zenon and eventually, we saw a bounce. Although the bounce didn’t last and the 20 SMA turned into resistance. Now Zenon is retreating lower again.

The stochastic indicator is oversold on the weekly chart.

On the monthly chart, the surge from above $2 until $24.50 during the first three months of this year is quite visible in ZNN/USD. In April the price formed a big doji candlestick, which signaled a bearish reversal after the massive candlestick of March and the crash came in May. Zenon lost most of the gains, but still remains up for the year-to-date period and the 20 SMA (gray) below is scaring sellers away as it holds as support. The stochastic indicator is also oversold at the bottom of the chart and reversing higher, so perhaps we will see a bullish reversal in the coming months which has already started but seems weak for now. We would be careful buying Zenon right now because it has been lagging the crypto market most of the time since the reversal.

Stochastic is oversold on the monthly chart as well