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Zilliqa (ZIL) Breaks Out From Long-Term Resistance

source-logo  beincrypto.com 14 December 2020 07:40, UTC

The Zilliqa (ZIL) price has been consolidating above a long-term support area at $0.027 since breaking out at the end of November.

Despite this, lower time-frames have begun to turn bearish, suggesting that Zilliqa will drop back support levels. 

ZIL Long-Term Levels

The ZIL price is currently trading between two major levels at $0.027 and $0.037. The former is acting as support and the latter as resistance.

ZIL broke out above $0.027 on Nov. 26, returned to validate it as support, and began another upward move towards $0.037. However, on Dec.7, ZIL was rejected and began the current downward price action.

Technical indicators are mixed. While the RSI has generated a bearish divergence and fallen below 70, the MACD is moving upwards. The Stochastic oscillator is moving upwards but has not yet made a bullish cross.

ZIL Chart By TradingView

Bearish Scenario

The daily chart suggests that a downward move for ZIL is most likely.

After breaking out from a descending resistance line (dotted) ZIL continued to increase but could not sustain the highs and created a long upper wick. The ensuing upward move generated considerable bearish divergence in the RSI. In addition, the MACD is decreasing and the Stochastic oscillator is very close to making a bearish cross.

If ZIL continues to drop, it may find support a the point of confluence between the descending resistance line and the current ascending support line (solid). This confluence gives us a target near $0.024 for ZIL to reach a low.

ZIL Chart By TradingView

Cryptocurrency trader @CryptoTony_ outlined a ZIL chart, stating that it will likely undergo a major decrease towards $0.01 before moving any higher.

While this is possible, there are several support levels above the area that are likely to offer support.

Source: Twitter


ZIL is expected to decrease towards the ascending support line at $0.024. A breakdown from the support line could trigger an extended move to the downside.

Disclaimer: Cryptocurrency trading carries a high level of risk and may not be suitable for all investors. The views expressed in this article do not reflect those of BeInCrypto.