- Zilliqa price retests the $0.097 to $0.121 demand zone after crashing 48%.
- Due to the nature of the support, investors can expect a sharp bullish reaction that pushes ZIL to retest $0.179.
- If the altcoin produces a daily candlestick close below $0.097, the bullish thesis will face invalidation.
Zilliqa price shows a slowdown in its momentum after a rally that caused its market value to more than quadruple. As the retracement enters a crucial support level, ZIL holders are faced with a decision that will determine their next move.
Zilliqa price at an inflection point
Zilliqa price moved from $0.038 to $0.230 by rallying a mind-blowing 503% in a little over two weeks. The rally on March 15 set up a swing high at $0.230. After this move, the altcoin began experiencing a slowdown in its momentum, leading to a reversal.
Combined with investors booking profits and Bitcoin price retracing, Zilliqa price crashed 48% to where it currently trades – $0.117. Interestingly, the $0.097 to $0.121 demand zone will serve as a major provider of buy-side liquidity.
Therefore, investors can expect a run-up to originate here. Depending on the optimism in the cryptocurrency market, this move could evolve into a rally that retests the $0.179 hurdle. The resulting upswing would constitute a 55% ascent.
ZIL/USDT 1-day chart
Regardless of the bullish possibility, the big crypto and the market look weak and less confident than they did last week. Therefore, a daily candlestick close below $0.097 will invalidate the bullish thesis for Zilliqa price.
Additionally, the move could also allow bears to crash ZIL to the immediate support level at $0.08 and $0.057. Due to the fair value gap extending from $0.097 to $0.051, the downswing is more than likely to occur.