- The Zilliqa price broke out of a cup and handle pattern on April 4, kickstarting a 28% bull rally.
- A decisive close above the supply barrier at $0.23 will provide a clear path for ZIL buyers to hit the target at $0.263.
- If sellers pierce the horizontal resistance at $0.204, the momentum will most likely face a cutdown.
The Zilliqa price broke out of a bullish consolidation pattern indicating the continuation of the bull run.
Zilliqa price eyes higher high
The Zilliqa price created a rounded bottom consolidation known as “cup” after failing to slice through the resistance level at $0.204 twice. The second bottom produced on April 5 was higher than the previous one and formed the “handle.”
This setup, known as cup and handle, projects a 28% upswing, determined by measuring the distance between the flat resistance and the cup’s bottom.
The Zilliqa price target of $0.263 is obtained by adding 28% to the breakout point at $0.204.
ZIL broke out of this pattern on April 4, signaling the start of a new bull rally. Additionally, the Zilliqa price is close to toppling its current all-time high at $0.2303 set up in 2018. This altcoin’s upward trajectory isn’t a cakewalk, primarily due to the presence of stiff resistance at $0.238, which coincides with the 127.2% Fibonacci extension level.
Hence, a decisive close above this level will serve as a pitstop providing traction for the remainder of the 28% upswing.
Adding credence to the bullish outlook is the recently spawned buy signal by the SuperTrend indicator produced due to the breakout.
ZIL/USDT 4-hour chart
Regardless of the bullish outlook, investors need to be cautious if the Zilliqa price slices through the support level at $0.204. This development could jeopardize the upward move and scare investors away.
If ZIL breaches through the demand barrier at $0.202 or the 78.6% Fibonacci retracement level, it would null the bullish scenario and set up the stage for a further downward move.
In such a scenario, the Zilliqa price might drop 6.5% toward the 61.8% Fibonacci retracement level at $.187.
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