The Polyhedra Network’s native cryptocurrency, ZKJ, is facing one of its darkest moments yet. In an astonishingly rapid collapse, the token plunged by 81% on June 15, falling from $1.95 to just $0.35 in under two hours. The freefall came after a wave of suspicious on-chain activity triggered a sharp liquidity withdrawal, fueling panic across the market. As of now, a potential recovery hinges on whether the price can hold above the $0.40 mark—though many remain skeptical.

Polyhedra Network was quick to issue a statement following the dramatic decline, explaining the plunge was tied to “abnormal on-chain transactions.” The team emphasized that the project’s underlying fundamentals remain intact, suggesting that the selloff was not based on any protocol-level flaw. However, such reassurances did little to stem the panic, especially among retail holders who watched their holdings evaporate in real-time.

Adding to the confusion, Binance later confirmed that the price collapse resulted from large ZKJ holders removing on-chain liquidity. This exit caused a so-called “liquidation cascade”—a snowball effect where leveraged positions are automatically closed, driving the price down even further. The timing of the event raised eyebrows, especially coming just weeks after 15.5 million ZKJ tokens were unlocked on May 29. This added supply may have amplified sell pressure.

While accusations of market manipulation surfaced on social media, no major platforms or analytics firms have substantiated those claims. Still, the sudden and violent nature of the crash has damaged sentiment, with many now questioning whether the token can recover in the short term.

Technically, the chart remains bleak. The price showed a minor bounce back toward $0.40 but struggled to establish a firm footing above that level. The Directional Movement Index (DMI) still indicates that bearish momentum dominates. Although the price briefly surpassed a lower high at $0.40, there has been no strong confirmation of a reversal.

Volume metrics offer a small glimmer of hope. The Accumulation/Distribution (A/D) indicator has moved sideways over the past 24 hours, despite the price forming slightly higher lows. This hints at some buyer activity returning to the market, albeit cautiously. Analysts warn, however, that such signals should be viewed with skepticism given the magnitude of the recent collapse.

On the more granular 5-minute chart, the liquidation heatmap shows concentrations of activity around the $0.35 and $0.39 levels. These have become “magnet zones” for short-term price action, often attracting both buy and sell pressure. However, due to the low timeframe, these figures are mostly relevant for scalp traders rather than long-term investors or swing traders.

Beyond technicals, much now depends on the next moves from the Polyhedra team and major token holders. Transparent communication and timely updates could help restore some confidence in the token. Any major statements—such as measures to stabilize liquidity, changes to token unlock schedules, or strategic partnerships—could potentially fuel a recovery.

Still, trust has taken a major hit. Events like these leave a long shadow, and many traders are opting to stay sidelined until clearer signs of stability emerge. Some investors are taking a wait-and-see approach, hoping that the token can establish a floor above $0.40 and consolidate for a sustained period. Others fear another wave of selling could drag the price even lower.

Looking forward, the $0.40 mark has become a psychological and technical barrier for ZKJ. A sustained move above it, with supporting volume and positive sentiment, could pave the way for gradual recovery. If not, the token may be at risk of slipping back toward $0.35 or even lower, further undermining investor confidence.

For now, ZKJ holders are advised to remain cautious. The underlying network may still hold promise, but the extreme volatility and uncertainty demand a patient and well-informed approach. Until clear signals of recovery appear—both on-chain and in terms of project communication—ZKJ remains a high-risk asset in a highly fragile state.