Here’s what to expect from Zilliqa’s near-term price action

Please fol­low and like us:
Pin Share

The sell­ers were quick to unleash their under­ly­ing force after Zilliqa (ZIL) approached 200 EMA (green). This lev­el also coin­cid­ed with the upper trend­line of the six-week-long down-chan­nel (yel­low). After the bulls failed to fos­ter an upswing on high buy­ing vol­umes, the price swift­ly dropped below its high liq­uid­i­ty range between the $0.0769-$0.0735 range.

A strong close below the $0.069-mark could pave a path for an extend­ed deval­u­a­tion in com­ing ses­sions. At press time, ZIL trad­ed at $0.07058.

ZIL 4‑hour Chart

Source: Trad­ingView, ZIL/USDT

After reveal­ing the onset of its Meta­verse project, the alt­coin wit­nessed an unpar­al­leled 456.9% ROI between 21 March and 1 April. Thus, the alt poked its ten-month high while fac­ing a strong rejec­tion of high­er prices. Con­se­quent­ly, ZIL had been depre­ci­at­ing with­in the bounds of a descend­ing chan­nel for over a month now.

As the mar­ket struc­ture kept tilt­ing to dis­play a bear­ish vig­or, ZIL found it hard­er to sus­tain itself above the chains of its 20 EMA (red) and 50 EMA (cyan). The Pitchfork’s upper trend­line (blue) has curbed all bull­ish recov­ery attempts in the last three days. While the price hov­ers around a rel­a­tive­ly high liq­uid­i­ty range, it could pos­si­bly enter into a squeeze before break­ing out. 

An inabil­i­ty to alter the cur­rent sen­ti­ment could push the price below the $0.069-mark. With low liq­uid­i­ty below this range, it could be tough for the bulls to cur­tail fur­ther loss­es on the chart. In a rather pos­i­tive out­come, a lift-off from the imme­di­ate base could see a tight phase before ZIL gath­ers thrust to break the lim­i­ta­tions of the upper fence of the Pitchfork.

Ratio­nale

Source: Trad­ingView, ZIL/USDT

The Rel­a­tive Strength Index was unable to dis­cov­er a spot above the mid­line for the last few days. The 41-mark sup­port could be vital in deter­min­ing the future price move­ments. A close below this mark could lead to an extend­ed slug­gish phase for ZIL.

The CMF evi­dent­ly dis­played a bear­ish mar­ket for the alt­coin, while stay­ing below the zero-mark. A slow­down at the ‑0.19 lev­el could affirm a bear­ish diver­gence with price. To top all of this up, the ADX con­tin­ued its decline and reit­er­at­ed a weak direc­tion­al trend. 

Con­clu­sion

In light of the cur­rent mar­ket struc­ture and the weak read­ings on its tech­ni­cals, ZIL could see an extend­ed decline phase. Should the bulls defend the $0.069-level, it could enter into a tight phase and aim to build up enough pres­sure to pierce through the $0.07-zone.

At last, investors/traders must keep a close watch on Bitcoin’s move­ment affect­ing the over­all per­cep­tion of the market.

Source link

Please fol­low and like us:
Pin Share

Leave a Reply

Your email address will not be published. Required fields are marked *