Zilliqa price set to drop 50% as Finland delivers the final blow
- Zilliqa price set to drop over 16% intraday as dollar steamrolls cryptocurrencies.
- ZIL price tanked after Finland committed to entering NATO, pouring oil on the fire between Russia and block;
- The risk of Russia using nuclear weapons is making investors flee,unlikely to return,, valuing ZIL price at $0.03.
Zilliqa (ZIL) price sees bulls folding and investors fleeing the scene as the mighty dollar steamrolls across all assets in the market. If there was still any doubt that the greenback is the number one reserve currency, safe haven and goto when there is turmoil in the markets, then here is proof. Expect to see a broad global sell-off in cryptocurrencies, with ZIL price being brought back to a penny stock value of $0.03 or $0.02, losing roughly 50% of its value.
ZIL price is getting downgraded to a penny stock value
Zilliqa price looked so promising in April when the price was flirting with $0.24 but then it fell back aggressively as dollar strength started to pour in. With the EURUSD hitting a five-year low sub 1.04, and the dollar index firmly higher, cryptocurrencies are getting hammered by this valuation reshuffle. The trigger for the fresh round of dollar strength comes on the back of another level of escalation with Finland committing to join NATO, aggressing Russia even more. This could result in retaliation as it is seen as a severe threat and sign of distrust against Moscow.
ZIL price is seeing a massive outflow of capital and sell orders outweighing any present bid orders. A few brave traders still want to pick up some ZIL price action, but the stock market mantra that dictates “sell in May and walk away” could well be one that holds until the fall of this year as no solution looks to be nearby. ZIL price is currently looking for support that can be found around $0.03, which goes back to December 2020 and looks to be a pivotal lign in the sand since 2018.
ZIL/USD daily chart
With headline risk also comes the opportunity that one single headline could easily overturn the previous one. Should, for example, the membership period for Finland to join take over a year, it is possible that by then, the Ukraine escalation could be solved, thereby making Finland’s joining NATO unnecessary. On the back of that, the dollar would weaken, opening up room for Zilliqa price to quickly recover back to $0.10 in just one or two trading days.
Author
Filip Lagaart
FXStreet
Filip Lagaart is a former sales/trader with over 15 years of financial markets expertise under its belt.
