Zilliqa (ZIL) continues its steep descent below some key price levels, dropping below its 200 EMA (green) over the past two weeks.
At the $0.06 floor, we finally saw some buyers and sellers collide.
With the sellers continuing to steer the long-term trends in their favor, the recent bounce-back will most likely run into obstacles between $0.08 and $0.09. During the last 24 hours, ZIL traded at $0.074667, up 5.8%.
ZIL Daily Chart
Source: TradingView, ZIL/USDT
The altcoin had been on an aggressive downslide at the beginning of this year. ZIL lost over 60% of its value from its December highs and swooped towards its 14-month low on 24 February.
After announcing the commencement of its new project in the metaverse, the altcoin witnessed an unparalleled 456.9% ROI between 21 March and 1 April. Then, after facing strong rejection of prices at its ten-month high, it descended by making a down-channel on its daily chart.
The recent rebound from the $0.06-level has positioned ZIL to test the bonds of its 200 EMA and the 20 EMA (red). Breaching the $0.08-mark will be critical for a well-needed market rally in the short term. In an undesired situation for the buyers, ZIL could drop from the 200 EMA and continue its squeeze in the $0.06 and $0.08 range.
Rationale
Source: TradingView, ZIL/USDT
ZIL’s indicators displayed mixed signals with an edge for a near-term bullish movement. The Relative Strength Index finally revived after exiting its low volatility position near the oversold region. A close above the 35-39 range would set the scene for a strong comeback rally.
The CMF revealed a rather money volume situation while it still swayed below the zero-mark. But the recent bullish divergence can open doorways for a short-term rally.
Conclusion
The current market structure unequivocally favored the selling momentum. But the recent build-up of buying pressure at the $0.06-level keeps short-term revival hopes alive for the bulls. In a best-case outcome, the buyers could eye to test the 20 EMA before making a trend commital move. With 20 EMA crossing below the 50 EMA, the broader trend supported the sellers.
Finally, investors/traders must keep a close watch on Bitcoin’s movement affecting the overall perception of the market.
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