Zilliqa Primed for Profit-Taking Following 46% Breakout


Key Takeaways

Zilliqa has surged by more than 46% over the past 24 hours.
The asset’s trading history suggests that a retracement could be underway.
ZIL would likely have to slice through resistance at $0.11 to gather enough momentum to advance further. 

Share this article

Zilliqa has outperformed the rest of the crypto market over the last 24 hours. Still, the Layer 1 token may have entered overbought territory after encountering stiff resistance.

Zilliqa Meets Resistance

Zilliqa is facing a critical resistance barrier that could determine where it will head next.

The Layer 1 network’s ZIL token has surged by more than 46% over the past 24 hours, rising from a low of $0.067 to a high of $0.098. However, the significant gains incurred appear to have put Zilliqa in overbought territory. ZIL has reached a vital supply zone that may prevent it from advancing further.

On its 12-hour chart, Zilliqa appears to have been developing a descending parallel channel since early April. Every time ZIL has risen to the pattern’s upper trendline, it has been rejected and retraced toward the middle or lower trendline. From this point, the token has rebounded, as is often the case with such channels.

Zilliqa’s recent spike in volatility came after the token bounced off the channel’s lower edge. A rejection could occur now that it has reached the pattern’s upper boundary. A sustained 12-hour candlestick close below the $0.087 support level could confirm the pessimistic outlook.

Under such circumstances, ZIL could dip and search for support around the channel’s middle trendline at $0.067 or even the lower trendline at $0.048.

Source: TradingView

Still, Zilliqa could potentially invalidate the pessimistic outlook if it can print a 12-hour candlestick close above $0.11. Breaching this vital resistance level could give ZIL the strength to break out of its descending channel and target $0.14.

Disclosure: At the time of writing, the author of this piece owned BTC and ETH.

Share this article

The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.

You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.

See full terms and conditions.



Source

Recommended For You

About the Author: Admin

Leave a Reply

Your email address will not be published. Required fields are marked *