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For nearly eight months, the Zilliqa coin price was falling under the influence of a falling wedge pattern. During the pattern formation, the prices resonated between two converging trendlines, carrying an established downtrend. Thus, the falling ZIL price reached a low of $0.0154 on December 30th, indicating a 93.4% loss from the all-time high of $0.2563. However, in theory, this pattern is known for offering a direction bull run, and here’s how you may trade it.
Key points
- A bullish breakout from the wedge pattern’s resistance trendline set ZIL price for a 30% upswing.
- The oversold RSI value hints the coin price may consolidate for coming trading sessions before it continues to rise ahead.
- The intraday trading volume in the Zilliqa coin is $449.8 Billion, indicating a 2348% gain.
Source- Tradingview
Though this falling wedge pattern carries a steady downtrend, each successive price cycle within this pattern gets narrower than before, indicating the losing bearish momentum. Thus, with this core concept, the buyers gradually wrestle trend control from sellers and initiate a fresh recovery.
Amid the recent new year recovery in the crypto market, the Zilliqa price bounced back from the $0.0154 low and triggered a new bull cycle within the pattern. Furthermore, the nine consecutive green candles offered a 62.8% growth and pushed the coin to its current price of $0.0256 mark.
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With this price jump, the Zilliqa coin gave a massive breakout from the aforementioned pattern’s resistance trendline, indicating further growth potential for the coin holders. The high volume hike during this breakout accentuates the buyers’ strong commitment to the upcoming recovery.
Thus, if the altcoin manages to sustain above the breached trendline, the post-breakout rally may offer a near-term target of $0.0288, followed by $0.033.
On a contrary note, a daily candle closing below the trendline will invalidate the bullish thesis.
Technical indicator
Relative Strength Index: the daily RSI, which reflects the strength of the ongoing price, has soared to the overbought. Thus, the indicator value at a high value of 81% suggests the prices need pullback or consolidation before resuming the upward march.
EMAs: the ongoing recovery in ZIL price breached 20-50-and-100-day EMA, offering some early signs of a trend reversal.
- Resistance levels- $0.0288 and $0.0334
- Support levels are $0.0243 and $0.02
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