Why Zilliqa price is set to double going into next week

Zilliqa (ZIL) price has been on a tear in March, only for the price to cool down roughly halfway around $0.12. Although price action faded further to the downside towards $0.10, bulls are plotting to push ZIL price back up towards $0.20 at least with a return to the all-time high at $0.26233 from May last year. With tail risk diminishing and the excellent attention for Zilliqa is the ‘new big thing’ in cryptocurrencies, expect current investors to profit from this brand.

ZIL price set to rally 142% as bulls squeeze out bears

Zilliqa price found support just above $0.10, which is a psychological level and is in the middle of the Fibonacci retracement levels 61.8% and 78.6%. Bulls are using the area to make a fade-in trade to slow down the fade after profit-taking got triggered with that massive move in March. As bulls return to the market, the drop makes the Relative Strength Index (RSI) cool down and pushes it back to middle levels away from being overbought.

In the first phase, ZIL price will jump to $0.15, which coincides with the 50% Fibonacci retracement level and fits as the price target for next week. Seeing that the bulls already made a higher high for the week than last week has resulted in bears being stopped in their additional short positions. Bulls will now chase for bears that have been shorting higher up, and hitting those stop losses could trigger an exponential move to the upside towards $0.26.

ZIL/USD weekly chart

Earlier this week, above the high of last week, the pop could turn into an entry point for bears to further short ZIL price and catch bulls in a bull trap. As price could plie further back to its opening price from Monday morning, bulls could get dragged further to the downside with mounting losses and set to get hit below $0.10. Once that happens, an accelerated move could set the scene for a nosedive towards $0.08 near the 78.6% Fibonacci level.