- Zilliqa price has been on a downtrend since its all-time high at $0.230 on April 1.
- A recovery above $0.106 could allow ZIL to retest the range’s upper limit at $0.133.
- A daily candlestick close below $0.097 will invalidate the bullish thesis.
Zilliqa price shows an interesting recovery after the recent sell-off. This move indicates that bulls are defending a key level, suggesting that a full-blown recovery above a support level seems likely.
Zilliqa price stuck in a ranging market
Zilliqa price saw an explosive move that propelled it from $0.046 to $0.230, a 392% run-up in a week. This massive upswing started to face selling pressure between March 31 and April 2. As a result, ZIL crashed roughly 58% to $0.095 as of April 26 and has since recovered to where it currently trades - $0.102.
Moreover, the last three sell-offs formed a distinctive lower low trend, which can be connected using a trend line. Every time, Zilliqa price hit this trend line, there was an uptick in buying pressure, which can be noticed in the long tail-end wicks present on the daily candlesticks.
However, the April 26 crash pushed ZIL below the lower limit of its range at $0.106. Therefore, a quick recovery above it could still allow Zilliqa price to make a move to retest the upper limit at $0.133.
If buyers manage to produce a daily candlestick close above $0.133, they will have overcome a significant hurdle. In such a case, Zilliqa price has a chance to rally to $0.180 and if the buying pressure continues to build, a retest of the all-time high could be likely.
ZIL/USDT 1-day chart
On the other hand, a daily candlestick close below $0.097 will invalidate the bullish thesis for Zilliqa price. In such a case, ZIL will kick-start a 47% sell-off that will push it to $0.050.
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