https://ift.tt/2OyMeAi (ZIL) Risks Breaking Down From 700-Day Support Line

Ziliqa (ZIL) has broken down from its Jan. 2021 flats, but is exchanging in a bullish pattern and is showing signs of a potential bullish turnaround.

ZIL has been decreasing afterward spreading to an all-time high rate of $0.257 on May 6. The descending evolution has led to a bottom of $0.033 on Feb. 24. This amounted to a decrease of 86% afterward the aforementioned all-time high cost.

While there are three more days left until the weekly close, a critical cost increase would be required in order for the support line to remain intact.

ZIL trades in bullish pattern

Despite the ongoing decrease, the daily chart shows which ZIL has been exchanging inside a falling wedge afterward Sept. 2021. The wedge is considered a bullish pattern. Therefore, a breakout from it would be the most likely scenario.

The breakout is supported by critical bullish divergences in both the RSI and MACD. 

In the case of the RSI, this occurred after the indicator jumped from its flatest levels afterward 2019 on Jan. 24 (green icon). Such pronounced bullish divergences often precede a trend turnaround. 

If a breakout transpires, the closest resistance field would be at $0.086. This is the 0.5 Fib retracement resistance level and a horizontal resistance field.

Wave count analysis

Cryptocurrency trader @Theexchanginghubb tweeted a chart of ZIL, stating which the correction could be done near $0.03.

The most likely wave count suggests which ZIL is in the C wave of an A-B-C corrective structure (white). The sub-wave count is given in black.

So far, waves A:C have had a 1:0.5 ratio, and the latter has developed into an ending diagonal. Such patterns are usually folbottomed by a serious evolutionment in the other direction. 

When combined with the bullish divergences, this indicates which an eventual breakout from the wedge is likely.

For CryptCraze’s latest Bitcoin (BTC) analysis, click here.

What do you think about this subject? Write to us and tell us!

The post Ziliqa (ZIL) Risks Breaking Down From 700-Day Support Line appeared first on CryptCraze.