Cryptocurrency

Zilliqa: Gauging the true potential for profitably shorting ZIL

Disclaimer: The findings of the following evaluation are the sole opinions of the author and shouldn’t be thought of funding recommendation.

The final three months have seen Zilliqa [ZIL] descend beneath some key worth factors whereas propelling a bearish flip on the EMA ribbons. 

The market construction just lately noticed shopping for resurgence in the $0.031-zone that helped ZIL discover a shut above the three-month trendline help (white, dashed). This rebound would possible face hurdles in the $0.042 and $0.05 vary whereas the Fibonacci resistances stood sturdy.

At press time, ZIL was buying and selling at $0.04002, down by 6.05% in the final 24 hours.

ZIL Daily Chart

Source: TradingView, ZIL/USDT

Since matching its yearly highs in the $0.18-zone, ZIL has been on an aggressive downslide. The alt misplaced over 87% of its worth from 1 April and plunged in direction of its 18-month low on 18 June.

After the EMA ribbon undertook a bearish flip, the 20 EMA (darkish yellow) has been curbing most shopping for rallies. The sellers visibly exhibited their edge in the present market dynamics.

The latest rebound from the $0.03-level aided ZIL to flip the three-month trendline resistance to help. But the 38.2% Fibonacci degree coincided with the EMA ribbons to create a strong barrier for shopping for rallies.

From a comparatively conservative lens, a convincing reversal from the 38.2% degree could lead on ZIL into a decent part in the $0.037-$0.042 vary. Any potential shut beneath the trendline help might result in a retest of the $0.03 long-term help.

Any enhancements in the broader sentiment might assist ZIL invalidate the bearish tendencies and take a look at the 61.8% degree earlier than presumably falling again into its bearish observe.

Rationale

Zilliqa Gauging the true potential for profitably shorting ZIL

Source: TradingView, ZIL/USDT

The RSI lastly revived after exiting its low volatility place close to the oversold area. But its latest peaks have bearishly diverged with the worth motion.

Similarly, the CMF additionally revealed a bearish divergence after a latest reversal from its trendline resistance. Nevertheless, the ADX displayed a comparatively weak directional pattern for the alt.

Conclusion

ZIL’s EMA ribbons and the 38.2% degree coincided to kind a stiff resistance. Also, it noticed bearish divergences with the CMF and RSI. Thus, it might proceed to see its sluggish part in the coming periods. Targets would stay the similar as mentioned above.

Finally, traders/merchants should maintain an in depth watch on Bitcoin’s motion affecting the general notion of the market.

Read the finest crypto tales of the day in lower than 5 minutes

Subscribe to get it day by day in your inbox.


Please choose your Email Preferences.

Related Articles

Leave a Reply

Your email address will not be published.

Back to top button