By Franklin Smith
The past couple of days have had Zilliqa compressing at 61.8% FIB zone ($0.108). Though the marketplace witnessed a rattle between sellers and buyers, some ZIL indicators preferred a bullish outlook. Moreover, the signals appeared lucrative to the token, considering the bullish declining wedge pattern.
Zilliqa can witness an upside breakout if the token steadies beyond the vital zone as bulls protect the golden FIB support. However, the fading volumes mean bulls require more strength to trigger the trend-shifting rally. While publishing this content, Zilliqa traded near $0.12, following an 8.93% gain over the past 24hrs.
Zilliqa has seen aggressive downward actions since the year started. The crypto lost more than 60% from the December peaks, plunging towards the 14-month lows on February 24. Nevertheless, announcing its Metaverse project saw ZIL on a staggering 456.9% ROI from March 21 to April 1. That pushed ZIL to its 10-month highs before encountering a massive rejection that saw the alt printing a bullish plunging wedge on the daily chart.
The latest revival from the POC (Point of Control) would position ZIL to test $0.134. Meanwhile, bulls need to defend this area for another upside rally for the altcoin. Unfavorable buyers’ outcomes may see Zilliqa hovering near the POC within a stretched squeeze phase.
Reasoning
Zilliqa indicators showed mixed signs while preferring bullish actions in the short term. The Relative Strength Index appeared not after escaping the neutral level and low volatility phase around the midline. The indicator closing beyond the range at 51-61 would prepare ZIL for a possible upsurge past $0.13.
Furthermore, the Aroon up swept the zero-level over the past five days. A potential resurgence in this area would mean bulls favor in the coming days.
Nevertheless, the Chaikin Money Flow presented a feeble money volume case within the altcoin. Reversals from the resistance would authorize a bearish divergence. Therefore, bulls may face challenges sustaining an optimistic rally.
Final Thought ZIL may target further recoveries due to the healthy RSI condition and the stable 61.8% FIB support coupling with the Point of Control. The alt would eye the range at $0.14 – $0.17. However, the feeble Chaikin Money Flow and reduced volume could see bears challenging the recovery wave. Enthusiasts should watch BTC’s actions as they impact the entire market.
Editorial credit: Piotr Swat / shutterstock.com