ZILL Price Analysis: As the token's price rises, the RSI shows bearish divergence

Bearish divergence is being formed on the daily time frame.
The pair of ZILL/USDT is trading at the price level of $0.0281 with a gain of 0.75% in the past 24 hours.

After hitting an all-time high of $0.2569 on May 6, 2021, the Zilliqa (ZILL) token has been in a decline, with bears riding the trend and pushing down the token’s price, forming lower highs and lower lows.

ZILL token on the daily chart

On the daily chart, the token has recently bounced off the previous strong support level with strong bullish momentum, forming a strong bearish candle. According to the daily chart, ZILL token is currently trading at $0.0281, up 0.75% in the last 24 hours. It has crossed and sustained above the 50 EMA and is currently trading between its key Moving Averages, the 50 EMA and the 200 EMA. (Red line is 50 EMA and the blue line is 200 EMA). On the daily time frame, a bearish divergence can be seen forming.

Relative Strength Index: The asset’s RSI curve is currently trading at 65.02, and it is declining in value despite the token’s increasing price. The RSI curve has crossed the 14 SMA downward indicating that the market is heading towards a downtrend. On the daily chart, a bearish divergence has formed. When the price makes higher highs while the technical indicator makes lower highs, it indicates a bearish divergence. If the price of the token starts to fall, the value of the RSI curve may fall even further.

Analyst view & Expectations

The token shows bullish strength, but the indicator does not support the bullish trend and does not provide a clear indication of the trend. Investors are advised not to buy unless there is a clear indication. Intraday traders, on the other hand, have a good opportunity to go short if the token begins to form a bearish candle on the daily chart and book profits based on their risk to reward ratio.

According to our current Zilliqa price prediction, the value of Zilliqa is expected to fall by -9.15% over the next few days, reaching $ 0.0254. Our technical indicators indicate that the current sentiment is Neutral, with the Fear & Greed Index reading 54. (Neutral). Over the previous 30 days, Zilliqa had 20/30 (67%) green days and 21.87% price volatility. According to our Zilliqa prediction, now is not a good time to buy Zilliqa.

Technical Levels

Major support: $0.0242

Major resistance: $0.0331 & 200 EMA on the daily chart

Conclusion

The trend’s direction is unclear, as the token is showing a bullish trend while indicator giving a bearish signal. Before acting, investors should wait for a clear indication.

Disclaimer: The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not establish the financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing