Many experts are bullish about the crypto markets, but no one expects it to recover in the short term. The FTX liquidity crisis became a major issue of the downfall when the crypto market started to recover from its yearly low.
Before the end of this year, most cryptos formed a yearly low after FTX announced a liquidity crisis in their exchange. Binance tried to acquire FTX, but the issue was beyond their control, so the U.S. Congress and SEC have taken this issue, and investors are expecting some regulations on FTX due to this liquidity crisis.
Now market experts are expecting that it will continue for a few more months, so it is not an ideal time to invest in 2022; rather, the volatility will continue even in the next year because inflations are not under control in many countries.
That is why the central banks will hike interest rates. As a result, retail investors will sell their stake in cryptocurrencies and buy safer government bonds for the long term. If you are interested in investing in Zilliqa, read our ZIL price prediction and price analysis.
At the time of writing this post, ZIL was trading around $0.0197, which is below the previous support of $0.0286. The coin is in bear’s grip because Zilliqa candlesticks are forming in the lower Bollinger Bands, while most other technical indicators suggest bearishness for the short term.
We do not think it is an ideal time to invest or accumulate the ZIL coin because it is tough to predict how long it will continue the bearish momentum. We have to analyze the weekly chart for more details.
Even on the weekly chart, the trend is extremely bearish because, in the last week, the red engulfing candle has broken the lower Bollinger Bands. Moreover, the Zilliqa token has been in a downtrend in the last few months.
You can accumulate the coin, but we think you should accumulate a lot of coins at a lower price. You can add ZIL to your watch list and invest when it forms a bottom on the long-term chart.