How will Zilliqa price react to the $0.04 level

Zilliqa price is undergoing a harsh sell-off. The $0.04 support zone could induce a pullback, but the amount of strength displayed by the bears leaves room for reasonable doubt.

Zilliqa price proposes reasonable doubt

Zilliqa price is currently undergoing a severe sell-off as the price has fallen 45% in one day. Zilliqa price has recently breached a parallel channel as the price currently trades at $0.049. The $0.04 zone has considerable support from the bulls, and since this is the first re-acquaintance in this zone since the all-time high, a countertrend reaction could occur. However, the Zilliqa price displays some concerning signals that could stunt the cataclysm.

Zilliqa price shows bearish confidence as the volume profile is beginning to coil into a classic ramping pattern on the daily chart. The bears are progressively printing larger bearish candles on the daily chart, fueling the pessimistic flame. Zilliqa price will need to display very strong bullish price action or consolidate for weeks before a clear bullish signal is shown.

ZIL/USDT 1-Day Chart

Still, invalidation is always possible for any trend. The earliest evidence of a sustainable countertrend rally will be a break back into the median parallel trend line at $0.07. A $0.12 countertrend target could be back on the cards if this were to occur, resulting in a 150% increase from the current Zilliqa price.