- Zilliqa breaks out of a bull flag pattern, pointing toward a rise to $0.12.
- ZIL/USD might revisit the 50 SMA support on the 4-hour chart before breakout comes into the picture.
Zilliqa seems to be getting ready for a massive elevation to highs around $0.12. The expected breakout follows a breakdown from the recent December peak at $0.106. For now, the least resistance path is upwards especially with the critical hurdle in the rearview.
Zilliqa nurtures the breakout to $0.12
ZIL has already stepped out of a bull flag pattern that appeared on the daily chart. The pattern forms after an asset price action extend considerably upwards followed a period of consolidation. The breakout from the bull flag often results in a powerful move higher, equaling the length of the flag pole. Therefore, if buying volume continues to rise behind the Zilliqa, the price will resume the uptrend targeting $0.12.
ZIL/USD daily chart
On the other hand, it is worth mentioning that the 4-hour chart shows that ZIL/USD is likely to retrace before embarking on the discussed upswing. Initial support will be provided by the 50 Simple Moving Average. If push comes to shove, the 100 SMA will come in handy, preventing losses under $0.07.
ZIL/USD 4-hour chart
At the moment, breaking above $0.08 is key to the expected uptrend. Therefore, a daily close at this level, may call for more buy orders, thereby increasing the volume behind Zilliqa and setting it up for the anticipated rally.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.