Zilliqa Price Analysis: ZIL rally at the tipping point, breakdown to $0.027 seems imminent

Zilliqa has recovered almost all the gains lost last week amid the widespread correction in the cryptocurrency market. However, the altcoin did not rise to November’s peak at $0.037; instead, a December high has been posted at $0.035. As the uptrend loses momentum, ZIL is on the verge of a breakdown that could retest $0.027.

Zilliqa upside hits a barrier as correction looms

ZIL is trading at $0.033 at the time of writing after bouncing off the hurdle at $0.035. A sell signal has been presented by the TD Sequential indicator on the 6-hour chart. The bearish outlook manifested in a green nine candlestick. Usually, sell signals of this nature forecast a correction of one to four daily candlesticks.

An upsurge in sell orders around the prevailing price levels might assist in validating the bearish outlook. In this case, a breakdown would begin to form toward the next critical support levels. The 50% Fibonacci level has highlighted support at $0.03. The second support holds the ground at $0.027, as illustrated by the 38.2% Fibonacci.

ZIL/USD 6-hour chart

On the other hand, traders must be aware that the pessimistic outlook will be invalidated if Zilliqa steps above the recent high at $0.037. Trading above this critical level might see an increase in demand for ZIL, thus boosting the token towards $0.04 and $0.045, respectively. Similarly, a new bullish outlook may come into the picture if Zilliqa closes the day above the 78.6% Fibonacci level.