- Zilliqa price has dropped 53% since April 17, pushing it from $0.254 to $0.117.
- A bounce from the 100 SMA seems plausible, but a failure will set the stage for a crash that could extend well beyond 12%.
- The 61.8% and 78.6% Fibonacci retracement levels at $0.154 and $0.175 are potential targets if ZIL pulls a 180.
Zilliqa price saw a massive decline after hitting the upper boundary of a technical pattern. The recently triggered market crash provided a tailwind for sellers pushing it out of bounds.
Zilliqa price eyes 12% drop
Zilliqa price has slumped 53% since hitting a local top at $0.254 on April 17 but shows restraint as it trades around the 50% Fibonacci retracement level. The presence of the 100-day Simple Moving Average (SMA) around the level makes this confluence a pivotal point to watch out for.
Since slicing through the 50-day SMA triggered a 33% crash, a similar move can be expected to evolve if the 100-day SMA is shattered.
If this comes to pass, ZIL will retrace 12% toward the 38.2% Fibonacci retracement level at $.124. However, this sell-off will continue if sellers keep piling up the ask orders. Under such circumstances, investors can expect Zilliqa price to slide another 15% to $0.105, coinciding with 23.6% Fibonacci retracement level.
Supporting this bearish outlook is the sell signal developed by the SuperTrend indicator due to the panic selling. This sign was last flashed on September 2020, nearly eight months ago.
ZIL/USDT 1-day chart
Considering the extent of this sell-off, a minor buying pressure could be enough to push Zilliqa price higher if the sellers reach exhaustion. If this bullish momentum produces a decisive close above $0.195, the bearish thesis will face invalidation.
A successful flip of this level could trigger a 25% upswing in ZIL price, perhaps to $0.243.
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.
Recommended Content
Editors’ Picks
Michael Saylor predicts Bitcoin to surge to $100K by year-end
MicroStrategy's executive chairman, Michael Saylor, predicts Bitcoin will hit $100,000 by the end of 2024, calling the United States (US) election outcome the most significant event for Bitcoin in the last four years.
Ripple surges to new 2024 high on XRP Robinhood listing, Gensler departure talk
Ripple price rallies almost 6% on Friday, extending the 12% increase seen on Thursday, following Robinhood’s listing of XRP on its exchange. XRP reacts positively to recent speculation about Chair Gary Gensler leaving the US Securities and Exchange Commission.
Ethereum Price Forecast: ETH could rally to $4,522 despite mixed on-chain flows among investors
Ethereum is down over 1% on Thursday following record net inflows across ETH exchange-traded funds in the past six days. Despite the bullish market outlook, $300 million worth of unstaked ETH could hit the market and cause downward pressure on prices.
Crypto Today: Bhutan sells $33M BTC, McDonald’s launches NFTs, PEPE, SUI emerge top gainers
The aggregate cryptocurrency market capitalization shrank by 1.45% on November 14, reflecting a $42.6 billion dip. In the last 24 hours, 170,878 traders were liquidated to the tune of $485.13 million, per Coinglass data.
Bitcoin: Further upside likely after hitting new all-time high
Bitcoin hit a fresh high of $76,849 on Thursday as crypto-friendly candidate Donald Trump won the US presidential election. Institutional demand returned with the highest single-day inflow on Thursday since the ETFs’ launch in January.
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.