- 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.
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.