- The Zilliqa price response to the -24.35% drop on June 21 has been corrective, not impulsive.
- The technical pattern of a death crossover will occur in the next few days.
- The measured move target of an upward wedge for ZIL almost s reaches on June 22.
The price of Zilliqa marked a new correction low on June 22, following the path of many Altcoins this week. The rebound has been reluctant, suggesting further weakness and potentially a test of the June 22 low . In reality, until ZIL regains the $ 0.085 level on a daily closing basis, market investors should step back and let the cryptocurrency provide a more precise definition of the price structure.
Zilliqa price lacks conviction
At the June 22 low, Zilliqa price had fallen more than -75% from the May high of $ 0.262 and a shocking 60% from the June 3 bounce high to $ 0.157, putting ZIL at the lowest price. par with some of the worst performing cryptocurrencies in June.
From May 23 to June 4, the price of Zilliqa described an ascending wedge pattern that finally broke down on June 5. The measured move of the upward wedge is 56%, which places the target at $ 0.052 . ZIL’s low on June 22 was $ 0.059, falling a bit short of hitting the 56% target.
The Zilliqa price requires a close above the 23.6% Fibonacci retracement of the move from March 2020 at $ 0.085 before considering ZIL entries . Above that level, the Altcoin could produce a rally to the 2020 rising trend line now at $ 0.116 , or possibly to the 200-day Simple Moving Average (SMA) at $ 0.124 , yielding 45%.
It should be noted that a potential death crossover, when the 50-day SMA crosses below the 200-day SMA, will limit the price of Zilliqa in pursuit of a bullish move, and the accompanying downside pressure. The technical pattern can weigh on any ZIL strength before the 23.6% retracement mentioned above.
ZIL / USD daily chart
The Zilliqa price rally over the past two days has not been driven by the impulsiveness needed to confirm a low or to drive ZIL into a constructive positive to overcome resistance at $ 0.085.
Price action speaks of indecision or a short-lived bounce . The likelihood of more selling increases after yesterday’s 10% drop, possibly pushing the Zilliqa price to the original measured movement target of $ 0.052 and a 25% loss from the current price.
A drop of that magnitude is sure to put the daily RSI in oversold territory, thus demonstrating that the final low of the ZIL is durable.
The Zilliqa price struggle reflects the broader weakness among cryptocurrencies and will be resolved to some extent by a stabilization of the market. However, the purpose of the revised support and resistance levels in the preceding paragraphs is intended to make ZIL’s trading decisions more mechanical and not just emotionally driven, especially important with the death crossover looming.