Bear Trap Triggers Recovery Opportunity In ZIL

Zilliqa’s (ZIL) price witnessed a roller-coaster ride in the past two months, starting from a perpendicular rally near the March-end and then a striking dip in April. Furthermore, the ongoing correction has recently pierced the 0.786 Fibonacci retracement levels, but today’s sudden price jump marks it as a false breakdown.

Key points

• The $0.8-$0.75 support fakeout may surge ZIL price by 25%
• The ZIL price aims to reclaim 200-day EMA
• The intraday trading volume in the Zilliqa coin is $527 million, indicating a 128% gain.

Source- Tradingview

The ZIL price have been trapped in a bear market as the avalanche of falling prices started after the rejection faced at the $0.22 mark.

The deflation has brought the ZIL price below the $0.080 level during the end of April. However, early May is marked green as the bullish reversal retests the $0.08 fallout.

By the press time, the ZIL price traders at the $0.008 mark with an intraday loss of 18.6%.

If the ZIL price provides bullish closing and sustainability above the $0.08 support zone and 200-day EMA, the traders can expect a potential bull run above the psychological mark of $0.1.

However, the resistance zone coincides with the 0.618 FIB level lowering the chances of a prolonged bull run.

Therefore, a much more likelihood of sellers regaining trend control to push below the $0.058 level to challenge the psychological support barrier of $0.050.

Technical indicator

RSI- The Relative Strength Index (37) slope shows a sharp surge from the oversold boundary, reflecting a bullish revolt ready to surpass the 14-day average.  

EMA- The recent price jump attempts to retest the fallout of the 200-day EMA while the 20 and 50-day EMA give a bearish crossover, suggesting the sellers have the support hand

• Resistance levels- $0.1, and $0.12
• Support levels are $0.08-$0.075and $0.058

From the past 5 years I working in Journalism. I follow the Blockchain & Cryptocurrency from last 3 years. I have written on a variety of different topics including fashion, beauty, entertainment, and finance. raech out to me at brian (at) coingape.com

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.