- Zilliqa announced that non-custodial staking will go live on the mainnet on October 14.
- The announcement has possibly triggered the holders into a buying a frenzy.
Zilliqa has strung together two straight bullish days. Previously on September 21, the price ($0.0137) reached its lowest value since May 20, 2020. Since then, the "Ethereum killer," has gone by nearly 43%.
The MACD suggests that bulls currently have market momentum on their side, so further positive price action is expected.
So, what triggered this bullish action?
Last week, Zilliqa announced that non-custodial staking will go live on the mainnet on October 14. This has likely triggered a buying frenzy among the holders who are accumulating as much as possible before participating in the staking program. Zilliqa is one of the most promising projects in the space with solid fundamentals, backed by a highly qualified team. As such, it makes sense as to why ZIL holders are solidifying their positions to benefit from the staking launch.
So, how far can this renewed bullish interest push the price up? For that, let’s take a more in-depth look at the daily price chart.
ZIL/USD daily chart
The first thing to notice here is that the SMA 100 is on the cusp of crossing over the SMA 50, to form a bearish cross pattern. However, by conquering the $0.0191 line, the buyers may have negated the bearish cross's effects. Historically speaking, ZIL has been characterized by sudden upward movements, followed by downfall and a period of consolidation.
Previously, from May 23, 2020, to June 10, 2020, the price jumped from $0.01 to $0.027. Following that, the price fell to $0.0176, over the next two months.
We saw the same sudden jump and gradual decline pattern repeating in in early-to-mid August as well. ZIL suddenly climbed from $0.0176 to $0.0264, before dropping to $0.0137 over the next month.
Going by the same pattern, we can assume that ZIL/USD is going to jump till the $0.02375 resistance line before it goes through another month-long decline. So, $0.02375 is the level where traders would likely want to cash out.
ZIL/USD hourly chart
The hourly chart has charted the rising wedge pattern. Wedge patterns tend to break in the opposite direction from the trend lines. Hence, a rising wedge indicates that the price will likely have a bearish breakout from the lower trending line. The RSI is also hovering along the edge of the overbought zone. Any bullish action in this time frame will likely tip it over and open the doors for the sellers.
So, ZIL may face a short term bearish correction on its path to hitting the $0.02375 resistance line.
Apart from Zilliqa, here is a handy report that will show you how the rest of the cryptocurrency market is performing.
If you want to know more about the KuCoin hack, then check this out.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
Bitcoin Price Forecast: Analysts anticipate increased volatility as the US presidential election looms
Bitcoin price teased its all-time high of $73,777 last week but declined to trade below $69,000 on Monday. Analysts suggest that market volatility is expected to rise as the US presidential election approaches.
Litecoin poised for double-digit decline after breaking ascending trendline
Litecoin breaks and closes below an ascending trendline, signaling a change in market structure. On-chain metrics paint a bearish picture, as LTC’s dormant wallets are active, and the NPL indicator shows a negative spike.
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC, ETH and XRP decline ahead of US elections
Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) all faced resistance at crucial levels ahead of the US Elections, leading to a price decline. As of Monday, they neared key support levels, and a firm close below these marks could signal further declines.
21Shares files S-1 for XRP ETF amid ongoing tension between Ripple and SEC
21Shares filed an S-1 registration with the Securities and Exchange Commission (SEC) on Friday for an XRP exchange-traded fund (ETF). While the chance of approval is slim with the current SEC administration, the landscape could change after the upcoming elections.
Bitcoin: New all-time high at $78,900 looks feasible
Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.