- Zilliqa price enjoys a high correlation with Bitcoin, pushing the token lower in the recent crash.
- Zilliqa dropped nearly 20% over the past week as the bloodbath wiped out gains of token holders.
- Analysts believe Zilliqa’s downswing is compelling and set $0.051 as the downside target.
Zilliqa price is hit by crypto bloodbath as the token prepares for a further crash. Analysts have a bearish outlook on Zilliqa, predicting a drop to $0.051 in the current downtrend.
Zilliqa price bleeds in recent crypto market pullback
Zilliqa is focused on laying the foundation for the metaverse and proponents believe the prompt deployment of metapolis could fuel a bullish narrative for Zilliqa price.
The token also remains highly correlated to Bitcoin and the crash in BTC triggered an 8% drop in the token’s price.
Zilliqa is working on a metaverse project that proponents consider similar to Meta’s project and investors betting on Zilliqa are awaiting the completion and launch of the project.
The token hit a high after a 500% price rally in 2021; since then Zilliqa token has posted consistent losses for the past 11 months. Analysts have identified $0.097 as the closest support in Zilliqa and consider $0.097 to $0.122 as the demand zone. The demand zone is key to Zilliqa's recovery, price should remain above the support level to recover losses.
Analysts believe a retest of the barrier could reverse Zilliqa’s downtrend; however, increasing selling pressure on ZIL across exchanges implies the downside target at $0.097 is more likely to be hit.
Brian Bollinger, a crypto analyst, notes that buyers are exhausted from the sudden price jump, which triggered a correction in the token. The analyst believes a crossover between the 100 and 200-day EMA could give Zilliqa price a push and trigger a rally in the token.
A break below $0.097, the immediate support level, could invalidate the bullish thesis for Zilliqa price.
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