Zilliqa (ZIL) has been decreasing since April 1 and broke down from the $0.11 area on April 25. It is possibly in the final leg of a corrective structure.
On March 26, ZIL initiated an explosive upward movement, which caused an increase of 377% in a span of only six days. The movement transpired with considerable volume (green icon). This led to a high of $0.23 on April 1.
However, the price has been falling since, leading to a low of $0.095 on April 15.
More importantly, ZIL has fallen below the $0.11 horizontal area, which was expected to provide support. Besides being a horizontal support area, the $0.11 area was also the 0.618 Fib retracement support level. Therefore, the fact that the price has fallen below it is a very bearish development.
The area is now expected to act as resistance.
Ongoing decrease
Technical indicators in the daily time frame are bearish, supporting the continuation of the downward movement. This is visible in both the RSI and MACD.
In the case of the RSI, which has been falling since April 1, it has just broken down below the 50 line. This is considered a sign of a bearish trend.
The MACD made a bearish cross on April 4 (red icon) and has nearly moved into negative territory. Similarly to an RSI decrease below 50, this is also considered a sign of a bearish trend.
ZIL wave count analysis
Cryptocurrency trader @PrinceofElliott tweeted a chart of ZIL, stating that the price could fall all the way down to $0.05 after the current bounce is complete.
Since the tweet, ZIL has completed its bounce, which is outlined by the B wave (black) in the image below. Therefore, it is likely that the price is now in wave C.
If waves A:C has a 1:0.618 ratio, which is common in such structures, ZIL would fall all the way down to a low of $0.055 in order to complete its correction.
Afterward, an upward movement could follow.
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