ZKC surges 30% with a rare spike in trading volume! Is the Christmas rally still for pushing out the inventory?

Boundless (ZKC) skyrocketed 30% to $0.12, but more strangely, the $90 million trading volume is actually 3.3 times its $27 million circulating market cap. This abnormal volume-to-price relationship has raised market doubts: Is this a revival recognized by zero-knowledge proof theory, or the last frenzy before a pump and dump? Technical analysis shows heavy resistance at $0.15, and holding above $0.11 support will be key for the bulls.

Abnormal signals behind the $90 million trading volume

ZKC currently has a circulating market cap of $27 million, yet its daily trading volume has reached as high as $90 million, with a volume-to-market cap ratio of 3.3:1, far exceeding normal levels. In a healthy market environment, daily trading volume is usually 10% to 50% of the market cap; exceeding 100% is already abnormal activity, and ZKC’s 330% turnover rate is completely illogical.

This abnormal volume-to-price relationship generally indicates three possibilities: First, a large influx of new funds driving price discovery. Second, market makers or whales creating false prosperity through wash trading. Third, informed traders exploiting informational advantages for high-frequency arbitrage. Considering ZKC has already plummeted over 80% after TGE, the first possibility is less likely, as genuine investors would accumulate in stages at low levels rather than concentrate on a single massive volume spike.

What’s more concerning is that such volume spikes often occur before trend reversals. Historical data shows that when small-cap tokens suddenly experience trading volumes several times their market cap, if they do not continue to expand volume in the following days, prices tend to fall rapidly or hit new lows. This is because initial volume surges may be driven by market makers’ manipulative tactics—pumping the price to attract retail chasing the rally, then gradually offloading at high levels.

Three major risks of abnormal ZKC trading volume

Liquidity trap: High trading volume may be concentrated on a few exchanges, with actual depth far below surface figures.

Wash trading suspicion: Some volume may be generated by the same entity’s buy and sell orders, creating a false appearance of activity.

Short-term speculation dominance: Extremely high turnover rate indicates that holders’ average holding time is less than 8 hours, lacking long-term buying support.

Investors should be especially cautious: if the $90 million volume mainly comes from a few large orders rather than broad retail participation, liquidity could dry up instantly once these large orders stop trading. At that point, investors trying to exit may face severe slippage or be unable to execute at their desired prices.

Can $52 million financing support valuation recovery

Despite short-term price concerns, ZKC’s fundamentals are not entirely poor. The project has secured approximately $52 million to $54 million in funding from well-known investors including Blockchain Capital, Bain Capital Crypto, and Delphi Ventures, with strategic partners such as the Ethereum Foundation, Wormhole, and EigenLayer.

Boundless (ZKC) is a universal zero-knowledge (ZK) computing protocol that delegates heavy computational tasks to a decentralized proof network, providing scalable and verifiable computation for any blockchain. As privacy technology becomes more widespread, and with many large investors and corporate entities seeking to integrate cryptocurrencies and blockchain tech while maintaining transaction privacy and the transparency of distributed ledger technology, Boundless is becoming increasingly attractive.

Since its market cap is far below the typical $500 million valuation for such projects, the recent decline offers an attractive opportunity for investors seeking practical tokens. Based on the $52 million funding amount, ZKC’s current $27 million market cap is even below its total financing, which logically suggests undervaluation.

However, the inverted relationship between funding and market cap is not a sufficient reason to buy. Many projects’ market caps fall below their funding amounts in bear markets because institutional investors’ costs are often much lower than public market prices—they may have entered private rounds at $0.01 to $0.05, and the current $0.12 still offers several times profit for them. Additionally, institutional investors usually have lock-up periods, but if their lock-ups are about to expire or have already been lifted, they might be the current selling pressure.

Technical analysis: $0.15 is the key to success or failure

(Source: Trading View)

After a prolonged downtrend, ZKC is attempting to stabilize. The current price has rebounded from recent lows around $0.11 to approximately $0.12. Although the overall market structure still reflects a bearish outlook, short-term price action shows early signs of a rebound as selling pressure diminishes. The 4-hour candlestick chart indicates a slight trend reversal, with higher lows forming after a failed attempt to extend the recent decline.

The current price faces immediate resistance above, with the psychologically significant $0.15 zone still the first major obstacle. This level has repeatedly hindered upward movement and may again attract sellers. Only when ZKC re-enters and sustains above the $0.20 area will the market structure shift more meaningfully. The $0.20 mark represents the previous range high and is a clear bullish reversal zone.

If a breakout occurs, it could initially open the way toward $0.28, and if momentum accumulates, extend to $0.33. The RSI has rebounded sharply from oversold territory and is now oscillating in the mid-range, indicating improving momentum but not yet entering overbought conditions. This suggests further short-term upside potential, but unless the key resistance is broken, the trend remains a correction.

Overall, ZKC appears poised to continue rebounding toward $0.15, with acceleration depending on whether buyers can reclaim the $0.20 level. If resistance holds, the price may continue to oscillate within the range or retest support at $0.11. Investors should closely monitor volume changes; if trading volume diminishes below $20 million in the coming days, the sustainability of this rebound will be significantly undermined.