Zilliqa Price Prediction: ZIL future may include a 65% decline
- Zilliqa price is releasing from a bear flag pattern on the weekly chart, implying a substantial decline.
- The March 2020 rising trend line has been reliable support on a weekly closing basis.
- ZIL 10-week simple moving average (SMA) is trending downward, creating a headwind for future price strength.
Zilliqa price rests below the 200-day SMA and near the March 2020 rising trend line. The breakdown from a bear flag continuation pattern focuses on the 23.6% Fibonacci retracement level, the 50-week SMA and the May low. A failure to hold the May low may unleash a considerable ZIL decline.
Zilliqa price chart discloses some encouraging support
Zilliqa price declined over 70% from the all-time high of $0.262 to the May 23 low of $0.069. The remarkable drop followed multiple frustrating attempts to overcome the 2018 high of $0.235, resulting in a double top that loudly triggered on May 19 with a drop below $0.115.
Zilliqa price identified support at the 50-week SMA before rebounding back above the March 2020 rising trend line and the 23.6% retracement level at $0.085 by the end of the week.
Over the last two weeks, Zilliqa price wedged higher, forming a bear flag pattern that triggered this week with a decline below $0.116. ZIL has since recognized support near the 23.6% retracement but still hovers below the March 2020 rising trend line currently at $0.100.
The bear flag continuation pattern’s measured move is roughly 65%, potentially pushing Zilliqa price down to $0.040. It would be a headline-worthy plunge, frustrating believers in the decentralized application-focused blockchain platform. At completion, ZIL would be trading below the 38.2% retracement of the 2020-2021 advance at $0.042 and just above the neckline of the 2018-2020 inverse head-and-shoulders pattern.
Without a weekly close below the March 2020 trend line at $0.100, Zilliqa price will be exposed to further oscillations around the 200-day SMA at $0.120, preserving an erratic period for ZIL market operators.
ZIL/USD weekly chart
To void the bleak outlook presented by Zilliqa price, ZIL would need a 20%+ gain from the current price and a weekly close above the flag’s lower trend line at approximately $0.119.
The Zilliqa price chart, like other altcoin charts, is illustrating a bearish outlook. However, with the precise, persuasive levels of support and resistance outlined above, ZIL investors are equipped to avoid the panic and financial devastation that would accompany a 65% decline.
Author
Sheldon McIntyre, CMT
Independent Analyst
Sheldon has 24 years of investment experience holding various positions in companies based in the United States and Chile. His core competencies include BRIC and G-10 equity markets, swing and position trading and technical analysis.
