Is the Zilliqa price prepping for a monstrous 50% decline?

  • Zilliqa price shows significant bearish divergence amidst the countertrend move.
  • ZIL price has strong Fibonacci targets 50% lower than today’s current market value.
  • Invalidation of the downtrend scenario is a breach above $0.058

Zilliqa price could be due for a serious liquidation. Key levels have been identified.

Zilliqa price looks weakened

ZiIliqa price merits considerable concern as the ERC-20 token has failed to hold support at both the  8- and 21-day simple moving averages. Since July 1, the ZIL price has rallied 50% to just under $0.050. Unfortunately, the uptrend’s move has come under very low volume, which confounds the idea that Zilliqa price could be at risk of a massive besiegement from overpowering bears.

Zilliqa price currently auctions at $0.043. A Fibonacci retracement indicator surrounding the largest rally from March 2020 into highs from May 2021 suggests the current price is just 38.2 % down from all-time highs. Because ZIL price has printed three sets of macro impulse waves up, the probability of a 50-61.8% retracement is very likely. If the bulls cannot re-hurdle the breached moving averages with an influx of volume, the sell-off targeting $0.020 and lower could very well be underway.

ZIL/USDT 1-Day Chart

Invalidation of the bearish thesis is a breach above $0.058. If the bulls can breach this barrier, they may be able to induce a buyers rally targeting $0.080 in the short term, resulting in a 90% increase from the current Zilliqa price 

In the following video, our analysts deep dive into the price action of Bitcoin, analyzing key levels of interest in the market. -FXStreet Team