Disclaimer: The findings of the following analysis are the only opinions of the writer and should not be considered investment advice
Buy the rumour, sell the news, the adage goes. Zilliqa and its token ZIL have seen a lot of hype on the internet and on social media lately. The price of ZIL has also risen nearly 400% in recent weeks in the wake of the optimism surrounding Metapolis, Zilliqa’s metaverse-as-a-service platform. The launch is scheduled for April 2, 2022 with a VIP event in Miami.
The short term Fibonacci retracement levels (yellow) plotted for ZIL’s move from $0.098 to $0.221 in recent days showed the price was too bullish to fall anywhere near the 61.8% retracement level .
Instead, the horizontal support level of $0.182 was visited after a bearish divergence on the hourly chart between the asset price and momentum (RSI).
After this pullback, ZIL has seen a rapid, boost back up after the renewed support test. At the time of writing, it was trying to break the USD 0.224 resistance level.
The RSI on the hourly chart hadn’t dived significantly below the neutral 50 line, even at the pullback to $0.177, marking a 15% drop. In the past few hours, the RSI rose again to show that the trend and momentum were strongly bullish.
The OBV, like the price, also tried to climb past a local high. If the OBV can pull this off in the next few hours, that would be another sign of strong buying pressure. The CVD has also been green in recent hours, to emphasize the question.
The indicators and price charts had an optimistic view of the lower time frames. On the downside, the 4-hour and 6-hour charts have begun to show bearish divergences. In addition, as the Metapolis event is scheduled for this Saturday, excited retail buyers may find themselves buying ZIL and providing exit liquidity to the bigger players in the market. Therefore caution is advised for late buyers.
This post Zilliqa has seen a regression to this level; further upside potential?
was published first on https://ambcrypto.com/zilliqa-has-seen-a-pullback-to-this-level-further-upside-was-likely/