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  • Zilliqa price lacks momentum as it gets rejected at $0.1122 again.
  • A retracement to $0.1018 or $0.0946 is likely to be followed by an upswing.
  • If ZIL breaks down $0.0873, the bullish narrative will take a hit, leading to a potential 20%   sell-off.

Zilliqa price had plans of heading higher after rejection at the mid-way point of the range it is traversing. However, the weakness in Bitcoin price seems to have kept it from rising. As ZIL pulls back, it will try to find a stable support level that will cushion the drop and serve as a foothold for future upswings.

Zilliqa price corrects with the larger crypto market

Zilliqa price is traversing a range that extends from $0.0693 to $0.1551. Although ZIL stayed above the 50% Fibonacci retracement level at $0.1122, recently, it has shown weakness.

On June 9, Zilliqa price pushed above the said barrier but failed to stay there, leading to a 21% sell-off. The June 15 attempt is likely to face a similar fate as ZIL has already retraced roughly 8.7% and is well below $0.1122.

A continuation of this sell-off could result in a retest of the 62% and 70.5% Fibonacci retracement levels at $0.1018 and $0.0946, respectively.  

The two support floors mentioned above could serve as a platform that allows the start of a new uptrend. Such a move could propel Zilliqa price above the 50% Fibonacci retracement level at $0.1122 and tag the resistance level at $0.1171. Following a breach of this barrier might result in a retest of $0.1292.

If the buyers continue to persist here, ZIL will likely tag the range high at $0.1551.

ZIL/USDT 6-hour chart

ZIL/USDT 6-hour chart

However, a dip below the 79% Fibonacci retracement level at $0.0873 will invalidate the bullish thesis. In such a case, there is a high chance that Zilliqa price might revisit the range low at $0.0693, after a 20% sell-off.