Zilliqa price seeks to wipe all gains since July, here’s what traders should keep in mind
- Zilliqa price threatens to take out the liquidity under the July 13 bottom.
- ZIL price witnesses a reject of the 8-day simple moving average.
- Invalidation of the bearish thesis is a breach above $0.04.
Zilliqa price embarks on a vengeful decline
Zilliqa price shows bearish signals towards the end of August that investors stifled. Since July 13, the ZIL price has rallied 45% into a monthly high at $0.049. A rejection from the psychological $0.05 zone accompanied by a bearish death cross of the 8- and 21-day simple moving averages (SMA) were the catalysts for a shocking penny-from-Eiffel style sell-off. The Zilliqa price has since lost 90% of the recent profits made.
Zilliqa price currently auctions at $0.035 as the bears are threatening to take out the liquidity under the previous bull run catalyst at $0.034. A large influx of volatility could ensue if and when the breach occurs. Traders with safety stops dating as far back as June 19 low at $0.029 will be in jeopardy. The 8-day simple moving average subtly affirms the bearish idea as the bears decisively rejected the price near upon engagement.
ZIL/USDT 4-Hour Chart
Invalidation of the bearish thesis is a breach above $0.04. If the bulls can breach this level, they could induce the next Zilliqa bull run targeting $0.07 in the short term, resulting in a 100% increase from the current market value.
In the following video, our analysts deep-dive into Zillliqa's price action, analyzing key levels of interest in the market - FXStreet Team
Author
Tony M.
FXStreet Contributor
Tony Montpeirous began investing in cryptocurrencies in 2017. His trading style incorporates Elliot Wave, Auction Market Theory, Fibonacci and price action as the cornerstone of his technical analysis.
