The price of ZRC, the native token of Ethereum's layer 2 Zircuit network, has risen more than 19% after being listed on a prominent centralized exchange.

Zircuit (ZRC) rose to $0.079 on January 13, up 24.8 from a weekly low of $0.063, while its market cap reached over $160 million at press time. The altcoin's price surge came as daily trading volume rose 69% from $32 million early Monday morning to more than $56.8 million.

ZRC's sharp rise on Monday came after advertisement Bithumb, a major cryptocurrency exchange based in South Korea, announced that it will list the altcoin on its platform with a South Korean won trading pair on January 13.

Listings on popular exchanges like Upbit and Bithumb have occurred quite often It led to sharp marches In associated crypto assets. However, it is important to note that rallies preceding stock exchange listings often see a reversal, as investors typically sell their holdings in a “sell the news” scenario.

One such example can be seen in Safe Wallet's SAFE token, which rose 20% before listing on Bithumb on January 10. I mentioned Earlier by crypto.news. However, the altcoin has since reversed most of its gains and is now down 15.8% from the intraday high it reached on the day of the announcement.

The list also ranked ZRC as the best token on CoinGecko.

ZRC's recent rally has also gained momentum due to rising demand among financial derivatives traders. Data CoinGlass shows that open interest for ZRC in the futures market rose 115% over the past day, reaching $10.98 million – much higher than the $981,000 recorded in January.

Many investors' interest in ZRC has also been driven by its impressive growth in the DeFi sector. according to DeFiLlamaZircuit's total value locked has risen to $725 million at the time of writing, far exceeding the $256 million recorded at the end of 2024. Most of its TVL is currently held in its staking protocol.

However, there remains one potential concern for ZRC, as a larger percentage of traders appear to be moving their holdings to exchanges, which could create selling pressure and risk a reversal of recent gains. According to CoinGlass data, approximately $3.35 million worth of ZRC were sent to centralized exchanges on January 13, compared to $3.28 million withdrawn.

In fact, ZRC has already given up most of its recent gains, falling 12.4% from its intraday high of $0.6994 at writing.

Will ZRC continue to rise?

However, technical indicators suggest that ZRC may resume its rally soon. On the daily chart, the altcoin price has risen above the middle Bollinger Band band at $0.71, indicating a possible shift back to the upside. The Moving Average Convergence Divergence Index supports these expectations, as the MACD line is pointing upward and appears ready to cross above the signal line, a sign of a bullish reversal in technical analysis.

As such, ZRC will likely retest the $0.8 psychological resistance level, which the altcoin struggled to break in late December. However, if bearish sentiment prevails, it could push its price down to the $0.064 support level.

At the time of writing, the altcoin is still 24.4% below its all-time high of $0.097, which was recorded in November last year.