Can Zilliqa (ZIL) Recover Past This Level and Escape a 45% Plunge?
- Zilliqa’s price succumbed to profit-booking moves since touching the $0.230 ATH on 1 April.
- Recent actions saw ZIL plummeting under the demand zone at $0.097 – $0.121, flipping the area into a breaker before hinting at a massive price crash.
- A daily candle closing beyond $0.121 will cancel Zilliqa’s bearish thesis.
Zilliqa saw its price falling beneath a vital area, showing ZIL buyers lost the battle. The development remains crucial as it predicts a massive crash for the alt and its investors. For now, ZIL’s road with fewer hurdles is the downside.
Zilliqa to Suffer Massive Drop
Zilliqa’s price gained approximately 400%, exploding towards $0.230 from the $0.046 lows. Surprisingly, the alt completed this exponential action within a week, and ZIP from its ATH at $0.230. Though impressive, the remarkable upswings triggered profit-booking by investors, translating to trend reversals.
While publishing this content, ZIL has dropped nearly 60%, changing hands at $0.093. Nevertheless, the alternative token breached the demand zone stretching between $0.097 and $0.0121. Zilliqa formed this territory on 28 March.
Losing 10% on 26 April saw ZIL undoing the demand territory, flipping the value area into a pessimistic breaker. This technical pattern predicts rejections amid breaker retest.
Thus, Zilliqa’s uptrends into the break will translate to retracements that could fill the FVG (Fair Value Gap), stretching between $0.097 and $0.050. Meanwhile, retesting the breaker’s bottom limit around $0.097 can see ZIL’s price crashing by 45%.
Zilliqa will likely perform depending on the broad market sentiment. While publishing this content, the crypto space struggles to recover from the latest bearish wave. The crypto market cap of all digital assets stood at $1.83 trillion, following a 1.80% surge within the previous day.
Maintaining the recovery move would mean upticks in crypto assets, including Zilliqa. Nevertheless, a daily candle closing beyond $0.121 will cancel ZIL’s bearish thesis. That can show buyers in control of the market, and ZIL can witness a 12% upside move towards $0.133.
As highlighted above, ZIL’s upcoming bias would rely on broad market sentiment. Zilliqa enthusiasts should consider the overall crypto space for meaningful decisions.
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