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Zilliqa (ZIL) Price Increases By 10% Despite Market Downturn

2 mins
Updated by Martin Robaldo
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In Brief

  • Zilliqa (ZIL) saved a breakdown from the $0.0165 horizontal support area. It is in the process of breaking out from a long-term descending resistance line.
  • The daily timeframe supports the continuing of the increase, since it shows a bullish pattern and a breakout from a diagonal resistance.
  • The next resistance is at $0.0200, 13% above the current price. On the other hand, the $0.0165 area is likely to provide support in case of a drop.
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The Zilliqa (ZIL) price saved a breakdown from the $0.0165 horizontal support area and is now in the process of breaking out from a descending resistance line.

The daily timeframe supports the reclaim of the horizontal support area and indicates that the price is likely to increase.

ZIL Price Saves Breakdown From Long-Term Support

The ZIL price has traded above the $0.0165 area since the beginning of the year. During this time, it has bounced at the area several times. However, each bounce led to the creation of a lower high, considered a sign of weakness. The highs create a descending resistance line.

Last week, it seemed that the cryptocurrency broke down from the $0.0165 area. However, it created a long lower wick (green icon) and reclaimed the area almost immediately afterwards. Now, the price is in the process of breaking out from the descending resistance line. Such deviations and reclaims are bullish signs and they often led to a trend reversal. In any case, ZIL needs to close above the descending resistance line in order to confirm its bullish trend reversal.

Zilliqa (ZIL) Price Movement
ZIL/USDT Weekly Chart. Source: TradingView

Despite this seemingly bullish price action, the RSI is still undetermined. The RSI is a momentum indicator traders use to evaluate whether a market is overbought or oversold, and to determine whether to accumulate or sell an asset. Readings above 50 and an upward trend suggest that bulls still have an advantage, while readings below 50 indicate the opposite.

While the indicator is increasing, it is still below 50. A close above the descending resistance line alongside a RSI movement above 50 will confirm that the trend is bullish.

ZIL Price Prediction: Double Bottom Leads to Increase

The daily timeframe technical analysis supports the continuing of the increase. There are two main reasons for this. 

Firstly, the price created a double bottom, which is considered a bullish pattern. The double bottom catalyzed the increase that caused the reclaim of the $0.0165 horizontal support area. 

Secondly, the double bottom was combined with bullish divergence in the RSI (green line). This is a bullish occurrence when a price decrease is combined with a momentum increase.

This often leads to bullish trend reversals. In the case of ZIL, it caused a breakout from a short-term descending resistance line. 

If the increase continues, the next closest resistance area will be at $0.0200, a 13% increase measuring from the current price. 

Zilliqa (ZIL) Price Breakout
ZIL/USDT Daily Chart. Source: TradingView

Despite this bullish ZIL price prediction, failure to sustain the increase could cause a drop to the resistance line, which is currently at $0.0160.

This would be a drop of 10% measuring from the current price.

For BeInCrypto’s latest crypto market analysis, click here.

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Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

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Valdrin Tahiri
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona School of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst. (I do not have a discord and will not contact you first there. Beware of scammers)
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