The Zilliqa (ZIL) price has broken out from a long-term resistance area and validated it as support after.
Zilliqa is expected to eventually break out from both its horizontal and diagonal resistance levels. After that, it would have the potential to reach a new all-time high.
ZIL Breaks Out
During the week of Feb. 8-15, ZIL managed to break out above the long-term $0.092 resistance area. It proceeded to reach a high of $0.166 before decreasing.
ZIL then returned to the $0.092 area once more, creating a long lower wick and validating it as support.
The price has been increasing since then. The increase was preceded by a significant hidden bullish divergence in the RSI.
Both the MACD and Stochastic oscillator are increasing, indicating that the trend is likely bullish.
If ZIL manages to break out above the $0.146 resistance, it would be expected to move towards a new all-time high price. The $0.146 resistance area is also the 0.618 Fib retracement of the most recent upward movement.
The daily chart shows that the price is been following a descending resistance line since Feb. 13. ZIL is currently in the process of validating it for the third time.
In the process, it has managed to reclaim the minor $0.13 support area.
Technical indicators are bullish, as evidenced by the bullish reversal signal in the MACD. A bullish cross in the Stochastic oscillator along with a breakout from the descending resistance line would confirm that the trend is bullish.
Cryptocurrency trader @cointradernik outlined a ZIL/BTC chart. Nik stated that despite the considerable lag, the next upward movement could take it all the way to a new all-time high price.
While technical indicators suggest the long-term trend is bullish, there is strong resistance at 290 satoshis.
The price is currently making its fifth breakout attempt. Since levels get weaker each time they are touched, a breakout is expected.
The next resistance level would most likely be found at 650 satoshis.
The long-term trend for ZIL/USD seems to be bullish. If it manages to break out above the current resistance area, it’s expected to move towards a new all-time high.
Similarly, ZIL/BTC is expected to break out above the current resistance area and move towards 650 satoshis.