- 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.
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.
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.