ZIL’s Upward Move Has the Potential for Considerable Gains

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In Brief
  • ZIL is trading between long-term support and resistance at $0.16 and $0.27, respectively.

  • Technical indicators on the daily time-frame are bullish.

  • The price has broken out from a descending resistance line.

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The Zilliqa (ZIL) price has been increasing since Sept 21 and has reclaimed an important horizontal level while breaking out from a short-term descending resistance line.

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The price is likely to continue moving upwards towards the resistance levels outlined below.

Long-Term Levels

The ZIL price is currently trading above a long-term support level near $0.016, having done so since it broke out in June. While the price purportedly fell below this level in Sept, it subsequently reclaimed it and left a long lower wick in its wake.

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The main resistance area is found near $0.027, above which the price has not traded since Oct, with the exception of one wick in July 2020.

While technical indicators do not provide a definitive direction, the RSI is above 50, a bullish sign.

Outside of the current $0.016 – $0.027 range, the closest resistance is at $0.036, while the closest support is at $0.009.

ZIL Chart By TradingView

Current Move

ZIL has been moving upwards since it reached a low of $0.0127 on Sept 21. The price has reclaimed the $0.0175 resistance area, which has now turned to support.

Technical indicators are bullish. The MACD and the RSI are increasing, the former being above 0 and the latter above 50. The Stochastic Oscillator is very close to making a bullish cross.

Therefore, the price should continue increasing towards the previously outlined $0.027 resistance area.

ZIL Chart By TradingView

The shorter-term 6-hour chart supports this possibility since ZIL has broken out from a descending resistance line and then validated it as support.

ZIL Chart By TradingView

Wave Count

Cryptocurrency trader @Mesawine1 tweeted a ZIL chart, which shows that the price has begun a bullish impulse. If the entire move takes place as expected, ZIL could reach a high above $0.036.

Source: Twitter

Measuring from the June high, it seems that the price has completed an A-B-C corrective structure (shown in black below), in which the A:C waves have a 1:1 ratio, customary in such corrections.

If the count is accurate, the price has begun a new upward move after the Sept 21 low (highlighted in green). It is likely to take the price towards the resistance areas outlined in the first section, at $0.027 and $0.036, respectively.

ZIL Chart By TradingView

The shorter-term count shows that the price has possibly completed waves one and two of this upward move (blue) and has begun the third one.

A decline below the wave two low (blue) at $0.0165 would invalidate this particular wave count.

ZIL Chart By TradingView

Conclusion

To conclude, it’s likely that ZIL has begun a new upward move that should take the price towards the $0.027 resistance area from the Aug highs, and possibly higher.

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Disclaimer: Cryptocurrency trading carries a high level of risk and may not be suitable for all investors. The views expressed in this article do not reflect those of BeInCrypto.

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All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.
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Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona graduate 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.

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