Zilliqa (ZIL) Price Breaks Out from Resistance Line, Saving Breakdown from Long-Term Support
The Zilliqa (ZIL) price has successfully avoided a breakdown from the $0.0165 support level and is now showing signs of breaking out from a descending resistance line. The daily timeframe suggests that the price is likely to increase.
Breakdown Avoided
Since the beginning of the year, the ZIL price has remained above the $0.0165 level. Although it has bounced off this area multiple times, each bounce resulted in a lower high, indicating weakness. These lower highs formed a descending resistance line.
Last week, it seemed like the cryptocurrency was breaking down from the $0.0165 level. However, it quickly reclaimed the area after creating a long lower wick. Now, the price is in the process of breaking out from the descending resistance line. Such deviations and reclaims are often signs of a bullish trend reversal. However, confirmation of this reversal requires a close above the resistance line.
RSI Undetermined
Despite the seemingly bullish price action, the RSI (Relative Strength Index) is still undetermined. The RSI is a momentum indicator used by traders to determine whether a market is overbought or oversold and whether to buy or sell an asset. Readings above 50 with an upward trend suggest that bulls have an advantage, while readings below 50 indicate the opposite.
Currently, although the RSI is increasing, it remains below 50. To confirm a bullish trend, the price needs to close above the resistance line and see an RSI movement above 50.
Prediction: Double Bottom Pattern Indicates Increase
The daily timeframe analysis supports the continuation of an increase in the ZIL price. There are two main reasons for this prediction.
Firstly, the price has formed a double bottom pattern, which is considered bullish. This pattern led to the reclamation of the $0.0165 support area.
Secondly, the double bottom was accompanied by bullish divergence in the RSI, indicating a momentum increase despite a price decrease. This often leads to bullish trend reversals, as seen in ZIL’s breakout from a short-term descending resistance line.
If the increase continues, the next resistance area to watch out for is at $0.0200, representing a 13% increase from the current price.
Failure to Sustain Increase Could Lead to Drop
While the ZIL price is predicted to increase, failure to sustain this upward movement could result in a drop to the resistance line at $0.0160. This would represent a 10% decrease from the current price.
Hot Take: Zilliqa (ZIL) Price Breaks Out from Resistance Line, Showing Signs of Bullish Trend Reversal
The Zilliqa (ZIL) price has successfully avoided a breakdown from long-term support and is now breaking out from a descending resistance line. The daily timeframe suggests that the price is likely to continue increasing. However, confirmation of this bullish trend reversal requires a close above the resistance line and an RSI movement above 50. If the increase continues, the next resistance area to watch out for is at $0.0200. On the other hand, failure to sustain the increase could result in a drop to the support line at $0.0160. Overall, there are positive signs for ZIL’s price movement in the near future.
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