|

Two reasons why Zilliqa price is ready for a quick 30% upswing

  • Zilliqa price shows a resurgence in buying pressure as it rallies 14% in the last 12 hours.
  • This run-up comes after a dip into the $0.097 to $0.121 demand zone.
  • A daily candlestick close below $0.097 will invalidate the bullish thesis for ZIL.

Zilliqa price is back in bulls’ control as it restarts its rally. This move comes after ZIL crashed continuously since March 28. Investors can expect this rally to continue due to two technical signals.

Zilliqa price presents a buy signal on two fronts

Zilliqa price has crashed 56% since March 28, pushing its market value from an all-time high at $0.237 to $0.101. This downswing was mainly investors booking profit after a 540% exponential rally.

The backstop was provided by the daily demand zone, extending from $0.097 to $0.121 and the 200 four-hour Moving Average (MA) confluence. Additionally, Zilliqa price produced a lower low on April 12 and April 18, while the Relative Strength Index (RSI) produced a higher low, indicating a bullish divergence.

All of these factors played a crucial role in giving control back to bulls. As a result, ZIL has rallied 14% in the last 12 hours or so and is likely to go higher. Going forward, investors can expect a 30% upswing that pushes the altcoin to retest the $0.146 hurdle.

This is where a local top is likely to form, but overcoming this barrier could propel Zilliqa price to tag $0.161, bringing the total gain to 44%.

ZIL/USDT 4-hour chart

ZIL/USDT 4-hour chart

While things are looking up for Zilliqa price, a daily candlestick close below $0.097 will invalidate the bullish thesis by producing a lower low. Such a development could see ZIL crash 40% to $0.059, where sidelined buyers can step in and purchase the altcoin at a further discount.

Author

Akash Girimath

Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.

More from Akash Girimath
Share:

Editor's Picks

Bitcoin Weekly Forecast: BTC retreats as macro headwinds grow
Bitcoin (BTC) remains under pressure, down over 4% this week and trading around $76,900 at the time of writing on Friday. Institutional demand shows signs of weakness as spot BTC Exchange Traded Funds (ETFs) are on track to end their three-week inflow streak, recording nearly $500 million in net outflows through Thursday.
XRP falls toward key support as macro uncertainty, weak momentum cap recovery
Ripple (XRP) falls below $1.33 on Friday, marking the third consecutive day of declines. The token continues to track the broader cryptocurrency market downturn, with investors closely monitoring heightened macroeconomic uncertainty ahead of the United States (US) Consumer Price Index (CPI) release and next week’s Federal Reserve (Fed) monetary policy decision.
Crypto Today: Bitcoin, Ethereum, XRP stabilize at lower levels amid ETF outflows and macroeconomic risks
The broader cryptocurrency market is rising on Friday, with Bitcoin (BTC) trading above $77,000 after testing lower support near $76,500. Ethereum (ETH) shows signs of stability, hovering above the support provided at $2,400 despite capped upside at $2,500. Meanwhile, Ripple (XRP) holds above $1.33 after three straight days of declines, reflecting growing headwinds due to macroeconomic uncertainty.
Bitcoin pulls back as another golden cross fails to deliver
Earlier this week, Bitcoin formed a golden cross, a technical signal that occurs when the price’s 50-day moving average rises above the 200-day moving average and is conventionally viewed as a precursor to a bullish rally. Historically, however, that’s often not been the case.
Bitcoin: BTC retreats as macro headwinds grow
Bitcoin (BTC) remains under pressure, down over 4% this week and trading around $76,900 at the time of writing on Friday. Institutional demand shows signs of weakness as spot BTC Exchange Traded Funds (ETFs) are on track to end their three-week inflow streak, recording nearly $500 million in net outflows through Thursday.