ZIL lost 8%; Breaks Vital Support Around $3.50

ZIL price continues to consolidate near the crucial support level. The price opened higher but failed to sustain the gains and retraced quickly. However, the buyers were able to defend the $3.50 level.

• ZIL price continues to slide lower with a negative bias.
• A decisive break of the weekly support around $3.50 will bring more downside in the momentum.
• The momentum oscillator skewed in the favour of negative momentum.

ZIL Price trades lower

ZIL price is moving to the downside movement since the beginning of April month. So far, the asset retraced nearly 35% from the swing highs just hovering above the important moving averages.

If the price breaks below the session’s low amid intense selling pressure more downside can be expected at the ZIL price. On moving lower, the sellers would take the first stoppage around the 50-day EMA (Exponential Moving Average) at $3.17.

In addition to that, the next level of support could be found around the $2.60 level.

The stochastic oscillator remains in the oversold zone since April 14. There is no sign of reversal as expected to continue to move lower.

The On-balance volume slips from the overbought zone while the price retraced below.

On the contrary, a shift in the bullish sentiment would result in a short-term bounce back in the price. A daily candlestick above $3.95 would invalidate the bearish outlook on the price.

In that scenario, the price would retest the highs of April 11 at $4.45 which coincides with the horizontal resistance zone.

Investors would next collect the liquidity around the psychological $5.0 level.

As of publication time, ZIL/USD reads at $3.57, down 6.29% for the day.

About Author

Rekha has started as Forex market analyst. Analyzing fundamental news and its impact on the market movement. Later on, develop an interest in the fascinating world of cryptocurrency. Tracking the market using technical aspects. Exploring on-chain analysis to track the market.