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Zilliqa price analysis: ZIL has been sideways after forming interesting pattern

  • Investors of Zilliqa price is facing the sideways stage into narrow short-range after reflecting the head and shoulder formation in terms of the daily price chart.
  • Zilliqa coin has been below the significant moving averages (including 20, 50, 100, and 200MAs) since mid-November.
  • The ZIL/Bitcoin pair price appears sideways at 0.000001202 satoshis, despite the ZIL/ETH pair is shown weakness.

Zilliqa coin noticed the head and shoulder pattern in December, and bears took advantage of this sign and dumped the coin. Now the ZIL coin is bullish by 4.01% at $0.04577, and it has been in the narrow horizontal range for 2-weeks. Recently, the ZIL coin marked a 52-weeks lowest level at 0.03758, which turned into the immediate critical support for short-term traders. Bulls are attempting to hold the ZIL crypto price above the demand zone (green) because they know that they will witness a bloodbath if they fail to hold the current level.

The immediate support of the ZIL coin sits at $0.0420. However, the Zilliqa coin has lost 21% trading volume over the past 24-hours. Since last week, the volume has been non-volatile, and the average volume is at $30 million. However, since 22-January, the volume oscillator indicator has been downwards rapidly, in result the indicator breached 6-months low (-19 level). Bulls could see $0.0560 as a resistance (the neckline of head and shoulder pattern) if they overcome the box pattern.

A breakout from box pattern would be welcomed by traders

The 20-day moving average stood to be the crucial bullish hurdle for a long time, once bulls successfully broke 20-MA but again sellers became aggressive at crucial 0.0820 resistance level. Zilliqa coin is moving towards 20 MA (blue) in terms of the daily price chart. In upcoming trading sessions, buyers could see the 50 and 100 MAs as a bullish hurdle. 

The relative strength index bounced back from an extreme oversold territory, and now it is at 38-mark, which indicates the strength in the ZIL coin’s price. However, the MACD indicator generated the bullish crossover yesterday from the negative zone; buyers may take advantage of this sign as a bullish indication. According to the average volume index, it reflects the strength in the bullish momentum.

Conclusion

Significant indicators like RSI, MACD, and ADX are flashing bullish indications, and buyers have an excellent opportunity to reverse the market trend. On the other hand, if bulls fail to step up, we could see the coin’s price below the demand zone.

Support level – $0.040 and $0.030

Resistance level – $0.056 and $0.082

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not establish the financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

Antonio K Smith: Antonio is a travel photographer by profession and came across the Crypto world during his profession. Since then his love, knowledge and interest towards the technology have increased. He brings his passion to create in his articles.