- Zilliqa price has dropped 53% since April 17, pushing it from $0.254 to $0.117.
- A bounce from the 100 SMA seems plausible, but a failure will set the stage for a crash that could extend well beyond 12%.
- The 61.8% and 78.6% Fibonacci retracement levels at $0.154 and $0.175 are potential targets if ZIL pulls a 180.
Zilliqa price saw a massive decline after hitting the upper boundary of a technical pattern. The recently triggered market crash provided a tailwind for sellers pushing it out of bounds.
Zilliqa price eyes 12% drop
Zilliqa price has slumped 53% since hitting a local top at $0.254 on April 17 but shows restraint as it trades around the 50% Fibonacci retracement level. The presence of the 100-day Simple Moving Average (SMA) around the level makes this confluence a pivotal point to watch out for.
Since slicing through the 50-day SMA triggered a 33% crash, a similar move can be expected to evolve if the 100-day SMA is shattered.
If this comes to pass, ZIL will retrace 12% toward the 38.2% Fibonacci retracement level at $.124. However, this sell-off will continue if sellers keep piling up the ask orders. Under such circumstances, investors can expect Zilliqa price to slide another 15% to $0.105, coinciding with 23.6% Fibonacci retracement level.
Supporting this bearish outlook is the sell signal developed by the SuperTrend indicator due to the panic selling. This sign was last flashed on September 2020, nearly eight months ago.
ZIL/USDT 1-day chart
Considering the extent of this sell-off, a minor buying pressure could be enough to push Zilliqa price higher if the sellers reach exhaustion. If this bullish momentum produces a decisive close above $0.195, the bearish thesis will face invalidation.
A successful flip of this level could trigger a 25% upswing in ZIL price, perhaps to $0.243.
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