Can Zilliqa bulls attempt a 25% recovery rally

Zilliqa price prepares for a minor rally as Bitcoin bears seem to be taking a nap. As the UST depeg crash reaches its climax, altcoins seem to be popping up, therefore, ZIL could also follow the trend and attempt a relief rally.

Zilliqa price ready for quick run-up

Zilliqa price crashed 44% in less than a week and set a swing low at $0.039 on May 12. This downswing shattered the $0.059 support level and flipped into a resistance barrier that bulls need to overcome.

The ongoing downswing in Zilliqa price has been a long time coming as ZIL formed a bearish breaker, extending from $0.097 to $0.121. Since the retest of this formation on May 5, ZIL has dropped a whopping 60% and shattered the $0.075 and $0.059 support levels. That move also came close to retesting the $0.037 hurdle.

However, the May 12 swing low at $0.039 seems to be a potential reversal point, at least for the time being. Therefore, investors can expect ZIL to rally at least 25% to retest the immediate hurdle at $0.059.

While this potential up move is a relief rally, the macro outlook for the crypto ecosystem is largely bearish and will continue to be so until Bitcoin price produces a clean bottom. Therefore, investors should keep their emotions in check and not get euphoric over a small bounce.

ZIL/USDT 1-day chart

While things are looking slightly bullish for Zilliqa price, it could evolve into a significant uptrend if certain conditions are met. A daily candlestick close above $0.075 would invalidate the bearish outlook by producing a higher high. In such a case, Zilliqa price could attempt to overcome the $0.097 to $0.121 breaker.