Good to Buy? Zilliqa is Trapped in a Tight Consolidation

ZIL cryptocurrency has become a go-to destination for multiple decentralized applications, even supporting staking and yield farming. This permissionless crypto is capable of processing thousands of transactions per second. Being the first crypto to work on a shared network, the transaction speeds have sometimes exceeded their claims. At present, they can solve up to 2500 blocks per day compared to just 900 blocks when it was launched in 2019.

Although the market capitalization is quite small, ranking in the 80th – 90th position in terms of market position, the scalability offered by Zilliqa is not contended by many competitors. Their long-term plan is to develop their platform to compete with conventional payments methods such as VISA and MasterCard.

Zilliqa Price Analysis

The clear picture is Zilliqa being in a small consolidative zone with heavy selling pressure on the upper levels and slight support on lower levels.

Zilliqa Price Analysis

Zilliqa cryptocurrency presents a decent price action with a continued rally towards either side with limited volatility. The price movement on ZIL is mostly a breakout and trending pattern. After consolidation for a good half of August 2021, ZIL finally broke out towards the 200 DMA, its strongest resistance level. 

At present, the 200 days moving average curve comes out to be at $0.1298 levels. As expected, the 200 DMA acted as a selling level and pushed back its valuation to more than 35% in just three days. 

Although many factors played in at that time, since it fell from a resistance level, the buying action resumed only after it touched the support level of $0.0944. The level between $0.0944 to $0.10 has previously acted as a support zone for Zilliqa for more than three instances, and the same was repeated on September 13. 

The buying action is being limited to the $0.1150 levels, which has emerged as the immediate resistance level stopping any upside movement. The higher wicks on candles going past $0.1150 indicates rampant profit booking forcing buyers into losses or making them book their losses. Another swing support at ZIL comes out to be at $0.0791.

RSI is currently trading above neutral zones, indicating a buying sentiment but not strong enough to contain the resistance levels. Based on our ZIL price prediction, any buyers searching for an entry point should either make an entry near its support level or buy above $0.1150 on a closing basis.

Zilliqa price prediction

Zilliqa on hourly charts provides more depth of its price action, which can be seen trending positively after retesting the support level. The upwards movement was decent towards $0.1150 but again failed to breach the level. 

At present, the price action is limited as a consolidative movement at $0.1116 to $0.1160 levels. MACD has taken a dip towards the negative trend despite being on the positive axis. This adds to the uncertain price movement we are witnessing on Zilliqa. There is support active at the $0.1073 level, which would be a pullback zone for any retracement from the upper levels.

Roxanne Williams

Roxanne Williams has recently joined as a market reporter for CryptoNewsZ - the 24/7 crypto news site, where she produces recent stories, technical analysis and price updates on world's leading cryptocurrencies.

Related Articles

Back to top button