Zilliqa Price Analysis: ZIL rally at the tipping point, breakdown to $0.027 seems imminent
|- Zilliqa recovered from the massive freefall in November but stalled at $0.035.
- A sell signal on the 6-hour chart is expected to validate the bearish narrative targeting $0.027.
Zilliqa has recovered almost all the gains lost last week amid the widespread correction in the cryptocurrency market. However, the altcoin did not rise to November’s peak at $0.037; instead, a December high has been posted at $0.035. As the uptrend loses momentum, ZIL is on the verge of a breakdown that could retest $0.027.
Zilliqa upside hits a barrier as correction looms
ZIL is trading at $0.033 at the time of writing after bouncing off the hurdle at $0.035. A sell signal has been presented by the TD Sequential indicator on the 6-hour chart. The bearish outlook manifested in a green nine candlestick. Usually, sell signals of this nature forecast a correction of one to four daily candlesticks.
An upsurge in sell orders around the prevailing price levels might assist in validating the bearish outlook. In this case, a breakdown would begin to form toward the next critical support levels. The 50% Fibonacci level has highlighted support at $0.03. The second support holds the ground at $0.027, as illustrated by the 38.2% Fibonacci.
ZIL/USD 6-hour chart
On the other hand, traders must be aware that the pessimistic outlook will be invalidated if Zilliqa steps above the recent high at $0.037. Trading above this critical level might see an increase in demand for ZIL, thus boosting the token towards $0.04 and $0.045, respectively. Similarly, a new bullish outlook may come into the picture if Zilliqa closes the day above the 78.6% Fibonacci level.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.