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.
![](https://cnews24.ru/uploads/e00/e00508c3b57fb094e34be0e291df044c2d7b8f23.png)
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.
![](https://cnews24.ru/uploads/83a/83ab2b70ff72dd063116dc5f2bfc8e4b53270f47.png)
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.
![](https://cnews24.ru/uploads/1c9/1c95c2bdc89838c91338b342b0de8d56cb560b61.jpg)
Conclusion
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.