Zilliqa is on its second day of consistent gains. It started the uptrend last week but stopped on Monday as it experienced some bearish action. ZIL has gained more than 200% over the last seven days and flipped many resistances, which begs the question, will it continue to rise? To answer that question, let’s take a closer look at the trigger.
Zilliqa Partners Agora
Metapolis 0n Friday announced a partnership between Zilliqa, Agora, and itself. Metapolis specializes in metaverse, the crypto asset company deals with blockchain, and Agora is a mobile app that helps creators showcase their talent.
A combination of these organizations is said to be perfect as they all share the same vision in regards to empowering and innovating the Creator Economy and adding new layers of engagement that are open and accessible to all through the Metaverse across various industries such as esports, luxury, music, health and wellness and more.
The impact of the news took effect the next day as supporters of these platforms went bullish on ZIL. It gained a little above 100% on Saturday and close the week with a more than 120% price change.
We observed that before the announcement, the 59th largest coin saw minimal increase and decrease that showed the uncertainty in the state of the coin. However, the most recent feat shows that the it is fully bullish. Will it continue?
The Relative Strength Index Flashes Warning
The 100% shot ZIL to the overbought region as we observed that RSI has been above 70. The retracement on Monday was expected to have slowed the ascent but failed as the coin continued its surge for the day.
As a result of the consistent massive price increase, Zilliqa is still at risk of dipping. However, the Pivot Point Standard offers little comfort. We note that the constant positive change in price has resulted in the asset under consideration flipping all the pivot resistance.
Additionally, the Moving Average Convergence Divergence (MACD) was intercepted last week and is showing no signs of flipping bearish as both EMAs are far apart. Is it time to enter or exit? Let’s take a look at some key levels to watch
Key Levels To Watch
We will consider six critical levels and how they will affect price action in the coming days.
The $0.038 Support
Following the flip of this level more than a year ago, it has never been revisited until earlier this month. It was tested broken but not for long as it recovered. However, after the recovery, prices still traded close to the mark.
Nonetheless, this is one vital level to watch as there is no closer mark where price decreases could be halted within the next two clicks. It is especially important as a flip of the $0.038 support send ZIL very close to it all-time low.
How does it affect the most recent surge? It is important to note that the uptrend is one of the fastest a coin in the top 60 has experienced. As a result, there was no solid support as the coin ascended, hence a trend reversal that could place the asset at risk of being tested.
The $0.060 Support
Based on recent price action we observed for a sustainable hike to take place, there must be a period of friction between the sub-$0.08 and the $0.06 support. For example, in January 2021, ZIL lingered between the two highlighted levels before hitting an all-time high.
Another instance took place in June. After a short stay at the channel, Zilliqa went on an uptrend. Apart from its importance, to price increases, the support under consideration is essential to halting correction.
Once the $0.060 support breaks, it is almost certain that there will be further price decrease. These dips most times test the preceding level.
The $0.08 Support
The $0.08 support is one vital level which has performed better as a resistance than the latter. While assuming the role of a bearish obstacle, it created an accumulation space for the bulls to gather the needed momentum to surge.
Not much can be said about it as support as it has been tested on fewer occasions compared to when it played the opposing role. However, we observed that most can withstand minor testing but will flip as soon as intense pressure mounts.
Based on recent price movements, we’ve seen that once this support fails, the next price destination is $0.06.
The $0.1 Support
As a resistance, $0.1 is not one of the strongest as recent price actions show that ZIL flips the mark with ease as soon as it trades closer to it. This has proved true on more occasions than one and we also saw it play out three days ago.
However, as a support, the level has been very active. Most times when an uptrend fails to break the $0.12 resistance, it falls back to $0.1. Additionally, we observed a lot of price action above the mark before it flipped.
Considering the fact that the preceding level is not one of the toughest, it is almost guaranteed that once the $0.1 support fails the $0.08 also does.
The $0.14 Support
The mark is mostly considered a resistance as Zilliqa has spent more time below it than above. Since June 2021, only on four occasions did the mark come under test. Three of these attempts failed, while the most recent succeeded.
However, as a support, $0.14 has had an hard fitting into this role. Why is it one of the critical levels to watch? ZIL is currently trading above the mark. Based on recent price movements, once the mark becomes a positive barrier, more price increases are assured.
On the other hand, it experienced few tests and held out. Being a weak level, prices don’t linger above it for long after the initial attempt.
The $0.18 Resistance
Like the preceding mark, $0.18 is mostly considered a resistance as Zilliqa has spent more time below it than above. Since March 2021, only on four occasions did the mark come under test with success.
However, an attempt at the said level does not come often hence, enough pressure is accumulated before an attempt. On the other hand, it is one of the weakest support based on recent price action. A test of $0.18 will almost certainly end in triumph.
Frequently Asked Questions About Zilliqa
Is it time to Enter or Exit?
Currently trading above $0.17, previous price actions hint that if the current momentum is sustained and ZIL flips the $0.18 resistance, it is almost certain that the $0.2 resistance will be tested. A flip of this level could guarantee a new ATH.
However, it was established that the asset is currently overbought and is due for correction. When will the correction take place? This is a question only time can answer.
How low can Zilliqa dip?
It is important to remember that the surge to the current price was very fast with a 100% increase on the first day and now a more than 50% positive change. This leaves no room to create solid support and as a result places ZIL at risk of massive retracement.
Nonetheless, Monday’s retracement created a positive barrier at $0.1. However, if that fails, Zilliqa could be left struggling at $0.08 or dip as low as $0.06.
In this article, we considered one of the reasons for the current uptrend ZIL is experiencing. We also went over a few indicators and their readings. Additionally, we looked at some key levels to watch as ZIL climbs.
The write-up concluded with a few frequently asked questions. Don’t take the information in this article as financial advice. Before making a purchase, every trader must conduct their own research.
Your crypto deserves the best security. Get a Ledger hardware wallet for just $79!