thecoinrepublic.com
- 1 Social metrics of Zilliqa crypto are improving, hinting at a possible recovery in the upcoming sessions.
- 2 The daily chart reveals a bearish crossover of the key 50-day and 200-day EMAs, pointing to a weakness prevailing in the market.
Zilliqa Crypto has been struggling to make a comeback in recent sessions and break out of a correction phase. The bears are making attempts to trigger a trend reversal in their favor.
On the flip side, the bulls are actively trying to defend the previous swing low to keep the trend in their favor, leading to aconsolidation near the support level.
Moreover, the social metrics, i.e., social dominance and social volume, have reported positive growth, suggesting potential optimism ahead. However, a bearish crossover of 50-day and 200-day EMAs casts doubt on an immediate upward movement.
Let’s look into a more thorough analysis and try to figure out the potential direction of the Zilliqa price in the upcoming sessions.
Rising Social Metrics Signal Bullish Days Ahead
As per the data obtained from a financial website, app.santiment.net, there has been a notable rise in social dominance and social volume metrics in recent sessions. The social dominance has jumped from 0.021% to 0.075%, suggesting a possible uplift in the price.
The social dominance and volume charts reflect changes in awareness and the popularity of ZIL crypto among users. Social media platforms like X, Instagram, and Facebook act as a medium for the cryptocurrency to spread its presence and appeal.
Moreover, increased activity in social metrics suggests the rising participation of the users, which ultimately results in increased demand. Generally, it has a positive impact on the price in the short term.
Can a Bearish Crossover Result in a Negative Trend Shift?
The daily chart witnesses a bearish crossover of the 50-day and 200-day EMAs, suggesting the continuation of a negative trend. Yet, the price hasn’t fallen below the recent low, which would confirm a bearish reversal in the trend.
On the flip side, the bulls hold firmly above the recent swing low and intend to keep the price trend in their favor. Currently, the daily chart is witnessing a consolidation and sideways trend.
If the bulls can surpass the price beyond the $0.025 level, it may invalidate a bearish crossover and confirm a breakout from a correction phase. Whereas, if the bears dominate and the price drops below the $0.022 level, it may indicate a trend reversal, potentially leading to a drop to the $0.02 level.
Conclusion
Zilliqa Crypto is in a correction phase, with the bulls trying to defend the low to maintain an uptrend. A rise in social dominance from 0.021% to 0.075% hints at a price boost. However, a bearish crossover of the 50-day and 200-day EMAs formed over the daily chart indicates weakness in the price. If the bulls can surpass $0.025, it could signal the end of a correction phase. On the other hand, if the price falls below $0.022, a bearish trend towards $0.02 may follow.