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Zilliqa price bleeds, experts evaluate possibility of trend reversal

  • Zilliqa price has posted 35% losses over the past week, as the token continues its downward trend. 
  • Proponents believe Zilliqa is currently in the buy zone. 
  • Analysts believe Zilliqa price needs to make a comeback to $0.10, its psychological support level, to begin recovery. 

Analysts revealed a long-term bearish outlook on Zilliqa price. Yet not all analysts are bearish the altcoin and some believe Zilliqa price is currently in a buy zone and a rise in demand could fuel a trend reversal for ZIL. There is evidence traders are scooping up ZILat a discount  following the recent price dip. 

Zilliqa price continues its downtrend 

Ziliqa price has posted consistent losses over the past two weeks. Yet analysts at InvestorsObserver evaluated the token’s historical trading patterns and believe that Zilliqa is currently in a buy zone. 

While meme coins and metaverse tokens recovered from the recent crypto market bloodbath, Zilliqa has failed to wipe out its losses. Despite the project’s contribution to the DeFi ecosystem, there is a rise in selling pressure across exchanges. 

Proponents believe if investors “buy the dip,” Zilliqa price could begin its recovery. As the demand for the token increases, it could witness an increase in buying pressure and a price rally. 

Nancy Allen, a leading crypto analyst, noted that Zilliqa price has formed a lower high and lower low on the daily price chart. The token is trading below its 200-day Simple Moving Average. While Zilliqa is currently in the accumulation phase, the token could soon begin a trend reversal. 

Analysts argue that Zilliqa is currently in the oversold territory and buyers remain hopeful for a turnaround in Zilliqa price. Investors have continued accumulating ZIL at the current price level, “buying the dip," irrespective of the price drop. Zilliqa price could start an uptrend with a trend reversal soon. 

Author

Ekta Mourya

Ekta Mourya

FXStreet

Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.

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