Zilliqa price may trap bulls as ZIL surges towards $0.12

• Zilliqa price has positive, bullish support in the Ichimoku system
• Oscillators show hints of limited upside potential past $0.12.
• A head-and-shoulders pattern is developing.

Zilliqa price has several bullish factors going for it in the Ichimoku system that suggest higher prices are here to stay. First, the current close is above both the Tenkan-Sen and the Kijun-Sen. Second, the Lagging Span is above the bodies of the candlesticks. Finally, third, the current close and the Lagging Span are above the Cloud. However, these conditions may be primers for a bull trap.

Zilliqa price nears robust Fibonacci resistance at $0.12 while oscillators show dishonesty in the current move

Zilliqa price may have many favorable Ichimoku conditions on its chart, but two of the primary oscillators show that any higher movement is suspicious. First, the Relative Strength Index continues to trade above and below the 50 level, displaying indecision and weakness. In addition, the Relative Strength Index has printed its own bear flag formation, signaling bearish continuation. The second oscillator discrepancy is the relationship between the current candlestick price rise and the Composite Index. The slope of the Composite Index’s rise to that of Zilliqa price is out of proportion.

Zilliqa/USDT Daily Ichimoku Chart

If Zilliqa bulls push to $0.12, then the beginning of a right shoulder in a head and shoulder pattern may develop. The same head and shoulder pattern also appears in the Composite Index.

Bears will likely take control on any close below $0.10 and push towards the 38.2% Fibonacci retracement and Senkou Span B value area at $0.08. However, the 2021 VPOC (Volume Point-Of-Control) is at $0.11 and will likely act as a compelling support zone. Zilliqa price could be considered overwhelmingly bullish on any close above $0.14.

 

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