Zilliqa price pauses its rally as ZIL bulls take a breather

Zilliqa price tanked 15% after it peaked Wednesday.
ZIL is nearing vital support that will keep this rally alive.
Expect to see a test and bounce higher for ZIL.

Zilliqa (ZIL) price sees bulls taking a step back as they show some fatigue in their rally that has been ongoing since March. Although a 15% slide looks threatening and scary, the rally is still in good health and shows no signs of ending anytime soon. With the Relative Strength Index (RSI) nosediving, the next bullish spike could be the one that takes out $0.037 and lifts profit by over 20%.

Zilliqa price has bulls taking a small pause before picking up pace again

Zilliqa price is undergoing quite a fade after price action peaked near $0.036 and did not make it up toward $0.037 for a retest of the high of February. Instead, a big fade got underway that is currently trading over 13% to the downside. With that sell-off, the RSI is taking a plunge as well and is already below 50, heading toward oversold territory.

ZIL sees perfect momentum being created for a new spike higher as support is set to come in at the green ascending trend line near $0.030. Even if that level does not hold, the pivotal historical level at $0.029 and the 55-day Simple Moving Average (SMA) can do the trick. The quick spike up could be proven an even bigger one on Tuesday and might take out $0.037 with a 20% gain in the pocket.

ZIL/USD 4H-chart

The threat of more losses could come if even that 55-day SMA does not hold the line near $0.029. That 13% loss could double to near 30% if the 200-day SMA at $0.026 fails to step in and save the day, while $0.023 would be catastrophic for bulls. In case ZIL tanks all the way toward there, that means a 40% sell-off as bulls are squeezed out of their position.

Share: Cryptos feed

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.