Zilliqa Price Prediction: ZIL to resume uptrend but first must regain $0.08 as support
|- Zilliqa price broke out of an inverse head and shoulders pattern on the weekly chart.
- The digital asset seems to be poised for a short-term correction before resuming uptrend.
In November 2020, Zilliqa saw a massive breakout from an inverse head and shoulders pattern on the weekly chart touching $0.036 and seeing a ton of continuation within the next month, to reach a high of $0.106 on December 21, 2020.
Zilliqa price has to climb above $0.08 to rise towards $0.36
After what seems to be a breakout above the neckline of an inverse head and shoulders pattern on the weekly chart, Zilliqa bulls targetted $0.36 in the long-term, however, they have encountered some short-term resistance at $0.106.
ZIL/USD weekly chart
After a breakout of this type of pattern, the price of an asset usually comes back down to re-test the previous resistance level which should act as a support, in this case, the $0.028 level.
ZIL sell signals
The TD Sequential indicator has presented a sell signal on the weekly chart and the monthly chart which adds a lot of credence to the bearish outlook. The bearish price target would be $0.028 which is the neckline of the head and shoulders pattern.
#Zilliqa still doing what I thought it would do -> consolidating after the impulse wave.
— Michaël van de Poppe (@CryptoMichNL) January 12, 2021
First level of interest hit at $0.055 and most likely constructing a range-bound period just like the previous period.
In the end very bullish outlook for this one for 2021. pic.twitter.com/aam5FTXPrA
#Zilliqa still doing what I thought it would do -> consolidating after the impulse wave.
— Michaël van de Poppe (@CryptoMichNL) January 12, 2021
First level of interest hit at $0.055 and most likely constructing a range-bound period just like the previous period.
In the end very bullish outlook for this one for 2021. pic.twitter.com/aam5FTXPrA
According to popular cryptocurrency and stock trader, Michale van de Poppe, Zilliqa price was bound for a correction and will now trade inside a tight range before another breakout above the previous high. Van Poppe states Zilliqa remains bullish in the long-term.
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.