- Zilliqa price is hit by massive selling pressure and profit-taking after a meteoric rise.
- ZIL extends its losses to three consecutive days.
- The 40% drop from the recent all-time highs could continue even lower.
Zilliqa price action has, understandably, has faced significant profit-taking over the past four days. ZIL is now down roughly 40% from its all-time high but still up nearly 190% from the March 26, 2022 open. Unfortunately for bulls – especially those that bought above $0.13, more pain is likely coming.
Zilliqa price faces its final support before an even deeper retracement occurs
Zilliqa price has found support against the top of the Ichimoku Cloud (Senkou Span B) at $0.14 but could extend lower to $0.13 where the weekly Kijun-Sen and bottom of the Ichimoku Cloud (Senkou Span A) exist.
However, due to how thin the Ichimoku Cloud is, Zilliqa price can have an easy time moving through it. If that occurs, traders should expect a return to the 50% Fibonacci retracement (of the all-time high to the March 21, 2022 low) at $0.097. The weekly oscillators support this outlook.
An interesting occurrence with ZIL’s oscillators is the discrepancy between the Composite Index and the Relative Strength Index. Despite a massive 500% rally since March 7, 2022, the Relative Strength Index only reached as high as 60. Contrary to the RSI’s performance, the Composite Index hit levels not seen since December 2020.
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Last week’s candlestick close for Zilliqa price confirmed an Ideal Bullish Ichimoku Breakout – but confirmation and follow-through are necessary. However, given the spectacular rise over the past two weeks, profit-taking could dent any further bullish momentum in the near term.
If bulls want to maintain a clear and strong uptrend, they’ll need to make sure Zilliqa price closes the current weekly candlestick at or above $0.13.