Disclaimer: The findings of the following analysis are the authors’ sole opinions and should not be considered investment advice.
Over the past three months, Zilliqa . seen [ZIL] descend below some key price points as you trigger a bearish flip on the EMA ribbons.
The market structure recently saw a resurgence of buying in the $0.031 zone that helped ZIL find a close above the three-month trendline support (white, dashed). This rebound was likely to encounter hurdles in the $0.042 and $0.05 ranges as Fibonacci resistances were solid.
At the time of writing, ZIL was trading at $0.04002, down 6.05% in the past 24 hours.
ZIL daily chart
Since ZIL has reached its annual highs in the USD 0.18 zone, ZIL has seen an aggressive decline. The alt lost more than 87% of its value as of April 1, and plunged to its 18-month low on June 18.
After the EMA ribbon suffered a bearish flip, the 20 EMA (dark yellow) has slowed most of the buying rallies. The sellers visibly showed their lead in the current market dynamics.
The recent rebound from the $0.03 level helped ZIL redirect the three-month trendline resistance towards support. But the 38.2% Fibonacci level has coincided with the EMA ribbons to create a robust barrier to buying rallies.
From a relatively conservative lens, a convincing reversal from the 38.2% ZIL level could lead to a tight phase in the $0.037-$0.042 range. Any potential that moves below the trendline support could lead to a retest of the long-term support at $0.03.
Any improvements in broader sentiment could help ZIL reverse bearish tendencies and test the 61.8% level before potentially falling back into its bearish track.
The RSI has finally revived after exiting its low volatility position near oversold territory. But the recent spikes have deviated bearishly with the price action.
Similarly, the CMF also revealed a bearish divergence after a recent reversal of its trendline resistance. Nevertheless, the ADX showed a relatively weak directional trend for the alt.
ZIL’s EMA ribbons and the 38.2% level converged to form a stiff resistance. It also saw bearish differences with the CMF and RSI. So it could continue to see its sluggish phase in the sessions to come. The goals remain the same as discussed above.
Finally, investors/traders should keep a close eye on Bitcoin’s movement and influence the overall perception of the market.
This post Zilliqa: Probing the True Potential for Profitable Shorting with ZIL
was published first on https://ambcrypto.com/zilliqa-gauging-the-true-potential-for-profitably-shorting-zil/