Zilliqa Price Prediction: ZIL future may include a 65% decline

  • Zilliqa price is releasing from a bear flag pattern on the weekly chart, implying a substantial decline.
  • The March 2020 rising trend line has been reliable support on a weekly closing basis.
  • ZIL 10-week simple moving average (SMA) is trending downward, creating a headwind for future price strength.

Zilliqa price rests below the 200-day SMA and near the March 2020 rising trend line. The breakdown from a bear flag continuation pattern focuses on the 23.6% Fibonacci retracement level, the 50-week SMA and the May low. A failure to hold the May low may unleash a considerable ZIL decline.  

Zilliqa price chart discloses some encouraging support

Zilliqa price declined over 70% from the all-time high of $0.262 to the May 23 low of $0.069. The remarkable drop followed multiple frustrating attempts to overcome the 2018 high of $0.235, resulting in a double top that loudly triggered on May 19 with a drop below $0.115.

Zilliqa price identified support at the 50-week SMA before rebounding back above the March 2020 rising trend line and the 23.6% retracement level at $0.085 by the end of the week. 

Over the last two weeks, Zilliqa price wedged higher, forming a bear flag pattern that triggered this week with a decline below $0.116. ZIL has since recognized support near the 23.6% retracement but still hovers below the March 2020 rising trend line currently at $0.100.

The bear flag continuation pattern’s measured move is roughly 65%, potentially pushing Zilliqa price down to $0.040. It would be a headline-worthy plunge, frustrating believers in the decentralized application-focused blockchain platform. At completion, ZIL would be trading below the 38.2% retracement of the 2020-2021 advance at $0.042 and just above the neckline of the 2018-2020 inverse head-and-shoulders pattern.

Without a weekly close below the March 2020 trend line at $0.100, Zilliqa price will be exposed to further oscillations around the 200-day SMA at $0.120, preserving an erratic period for ZIL market operators.

ZIL/USD weekly chart

To void the bleak outlook presented by Zilliqa price, ZIL would need a 20%+ gain from the current price and a weekly close above the flag’s lower trend line at approximately $0.119.

The Zilliqa price chart, like other altcoin charts, is illustrating a bearish outlook. However, with the precise, persuasive levels of support and resistance outlined above, ZIL investors are equipped to avoid the panic and financial devastation that would accompany a 65% decline.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.


RELATED CONTENT

Loading ...



Copyright © 2024 FOREXSTREET S.L., All rights reserved.