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  • Zilliqa price saw a low volume break out from an ascending triangle formation yesterday.
  • Due to the lack of bullish momentum, ZIL has dropped back into consolidation.
  • A decisive four-hour candlestick close above $0.12 will re-confirm a bullish breakout and propel ZIL by 35%.

Zilliqa price expected an upswing as the ascending triangle pattern was breached on March 3. However, the breakout  wasn’t backed by substantial buy volume, which has pushed ZIL back into the consolidation phase.

Zilliqa price gives higher-high another try

Although Zilliqa price sliced through the horizontal support barrier at $0.12, it isn’t bearish per se until it breaks down the triangle’s hypotenuse. The likely course of action for ZIL here is to gather enough momentum for another breakout.

Zilliqa price target is determined by measuring the distance between the swing high and the swing low formed between February 23 and 24 and adding it to the breakout point at $0.12. So, a 35% upswing places ZIL at $0.16.

Maintaining Zilliqa’s bullish momentum is the presence of the 50 and 200 four-hour moving averages (MA) below the current price level. Therefore, any short-term selling pressure will be absorbed by buyers around these levels. Adding credence to ZIL’s optimistic outlook is the SuperTrend indicator’s buy signal that was spawned on March 3.

ZIL/USDT 4-hour chart

ZIL/USDT 4-hour chart

A spike in selling pressure that pushes the Zilliqa price to slice through the triangle’s hypotenuse at $0.11 will result in a 10% drop to $0.10. This level coincides with the 200 four-hour MA.  

Investors should note that a drop here could be catastrophic and send ZIL to $0.09, which is another 16% drop.