Zilliqa (ZIL) Price Reclaims 686-Day Support — 40% Price Surge Could Follow
How Long Will the ZIL Increase Continue? | Credit: Hameem Sarwar
Key Takeaways
- Zilliqa (ZIL) reclaimed a 686-day horizontal support area.
- The price broke out from an ascending parallel channel.
- Can the upward movement take ZIL to its range high?
The ZIL price has increased by over 75% in November. The upward movement coincided with the announcement of Ziliqa 2.0, which will offer faster and more efficient transactions while introducing X shards.
Torch Wallet also announced that they are creating a customized extension for Zilliqa 2.0, intending to onboard millions of users to the Zilliqa ecosystem. Last week, ZIL futures were also added on Kraken.
Let’s look at the ZIL price action and see how long it can sustain this upward movement.
ZIL Reclaims Support
The weekly time frame ZIL chart shows that the price broke down from the long-term horizontal support of $0.0163 in August.
ZIL fell to a low of $0.0107, the lowest price since 2020. At the time, it seemed that the breakdown could lead to a steep fall and a new all-time low price.
However, the ZIL price regained its footing shortly afterward and reclaimed the horizontal area, validating it as support. This made the entire downward movement a deviation.
In November, ZIL started to move upward and created three successive bullish candlesticks, increasing by over 90% during this period.
ZIL reached a high of $0.0266 last week and trades in the middle of its long-term range of $0.0163 – $0.0340. The range high is 40% above the current price.
Technical indicators are bullish, predicting that the ZIL price will reach the range high and possibly break out.
Both the Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) generated a bullish divergence (green) before the upward movement and are now increasing. Additionally, the RSI is above 50, and the MACD is above 0.
ZIL Price Breaks Out
The daily time frame analysis suggests the upward movement will continue. The price action, indicator readings, and wave count all align with this bullish ZIL prediction.
The price action shows that ZIL broke out from an ascending parallel channel and reclaimed the $0.0238 horizontal and Fibonacci resistance levels.
Technical indicators are bullish since the RSI and MACD are moving upward, and neither has generated any bearish divergence.
Finally, the wave count shows that ZIL is currently in wave three of a five-wave upward movement, characterized by the breakout from the parallel channel. Once wave three ends, the ZIL price can complete wave four by returning to the $0.0238 area and validating it as support.
A likely target for the top of wave five is at $0.0319-$0.0340, created by the 0.618 Fibonacci retracement resistance area and the range high. The reaction once the price is there can help determine the future trend’s direction.
Increase Will Continue
The Zilliqa price likely started a bullish trend reversal by reclaiming its long-term horizontal support area at $0.0163.
The increase could continue until the range reaches its high at $0.0034. Once the ZIL price is reached, the reaction can determine whether the long-term trend is bullish or bearish.
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