• Zilliqa price action continues its spectacular bullish drive.
  • The short squeeze may not be finished as ZIL approaches its all-time highs.
  • Downside risks could be substantial in the event of a major pullback.

Zilliqa price action has been almost singular in its performance relative to its peers this week. It has moved a staggering 380% and maintains the great majority of those gains, with the current weekly close at 330%. So the question bulls and bears both have is this: will ZIL keep going higher?

Zilliqa price action, if momentum is maintained, could more than double

Zilliqa price is close to completing a condition that many altcoins and major market cap cryptocurrencies have failed to achieve: positive value for 2022, new 2022 highs, and in close proximity to its all-time highs.

The momentum has been impressive, especially given Thursday's selling pressure across the entire crypto market. As a result, Zilliqa price, for the most part, was unchanged and closed in the green.  

A large number of short positions on unregulated derivatives exchanges remain open, with many deep in the red and out of the money. This means that many participants have yet to cover their short positions and could be liquidated very soon if Zilliqa price continues higher. The result of that activity is a massive conversion of original sellers now turned, against their will, into buyers, further accelerating ZIL's rise.

ZIL/USDT Weekly Ichimoku Kinko Hyo Chart

Zilliqa price may not stop until it hits the 61.8% Fibonacci retracement at $0.49 – just shy of the critical and psychological $0.50 value area. As a result, there will likely be some significant profit-taking at that level.

However, if Zilliqa price loses momentum, the pullback could be dramatic. ZIL could retrace more than 35% from the current close to test a cluster of support levels in the $0.135 value area. $0.135 contains the top of the weekly Ichimoku Cloud (Senkou Span B), the bottom of the Ichimoku Cloud (Senkou Span A), the Kijun-Sen, and the Tenkan-Sen.

 

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