Key Takeaways:
- The price of ZIL, the native token of Zilliqa, could rally 50%.
- The hourly charts indicate a possible trend reversal from $0.12314 support.
- The daily charts, on the other hand, indicate a death cross between MACD and 9-day short EMA.
YEREVAN (CoinChapter.com) – The price of ZIL, the native token of smart contracts platform Zilliqa, shows signs of potential recovery following the massive selloff in the past week. As indicated by the hourly chart on Trading View, a possible breakout of the downtrend line could propel a positive price action, taking the price of ZIL on a 50% rally.
For that to happen, ZIL needs to find vital support at $0.12314. In the event of this happening, the trend reversal could put the price of ZIL on course to retest $0.1400, a 25% initial rally from the current price. The long-term target would be an additional 25% rally to the resistance mark of $0.17790.
On the flip side, failure to find the necessary support would further extend the descending trend line, taking the fall to as low as $0.11773, the next support point from March 30.
Moreover, the trading volumes in the hourly chart indicate a possible continued downtrend. The Moving average convergence divergence (MACD) also does not work in Zilliqa’s favor. The short 9-day exponential moving average (EMA), seen on the chart as the blue line, could form a death cross with the 26-day long exponential moving average (orange line). Such an occurrence could hinder the prospects of positive price action for ZIL.
The hour chart’s relative strength index (RSI) has also formed a slight downward curve, adding to Zilliqa’s voes. However, one needs to wait till the end of the day’s trading session to get better indications.
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ZIL 500% rally and the following selloff
Between March 15 and April 1, Zilliqa (ZIL) spiked over 500% to break the $0.2307 mark, having started the rally at the $0.03767 low point. However, following the exponential run-up, ZIL’s momentum dropped. A massive selloff by investors booking profits breaks the token’s uptrend.
The falling price of Bitcoin (BTC) also fueled the drop in the positive price rally. Since the start of April, the leading cryptocurrency has shed around 15% of its price. As March came to a close, Bitcoin exchanged hands at a little over $48,000. At the time of writing, BTC trades at $41,180 per token, according to CoinMarketCap.
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Metapolis, the Metaverse of Zilliqa (ZIL), fails to dazzle
The much-anticipated launch of Metapolis, Zilliqa’s metaverse, failed to alter the coin’s downtrend pattern. Although market watchers attributed a part of ZIL’s 500% rally to it, it did not seem to hold ground following its launch.
According to an earlier press release, Metapolis launched on April 2 on the Nvidia Omniverse as the first metaverse as a Service (MaaS) platform.
In addition, the smart contracts platform Zilliqa partnered with Agora, the real-time engagement platform. The move had ignited an additional excitement among investors. However, despite the developments, the downward price reversal on April 1 persists.
Looking at Zilliqa’s daily chart, one can see a troubled trading session ahead for ZIL.
The continued steep drop in the trading volume spells more troubles even on the daily chart. The Moving average convergence divergence (MACD) does not work in Zilliqa’s favor. Both the short 9-day exponential moving average (EMA), seen on the chart as the orange line, and the long 26-day EMA (blue line) are on a downward trajectory. As a result, MACD has fallen below the short-term EMA to form a death cross, indicating further short-term selling pressure.
Whether ZIL can bounce back from the immediate support to attempt a recovery remains to be seen. But, as it starts, the coin needs the bulls to rally behind it to prevent a further downtrend.
