The Zilliqa(ZIL) technical chart shows multiple higher price rejection candles at $0.211 resistance. This constant rejection from above may trigger a bearish reversal and plunge the altcoin to the $0.136 mark. Is its safe to hold during the correction?
Key points
- ZIL chart shows several high-tail rejection candles at $0.221 resistance
- The ZIL price could correct till the 0.5 Fibonacci retrenchment level
- The intraday trading volume in the Zilliqa coin is $3.4 Billion, indicating a 32% loss.
Source-Tradingview
The sudden pump in the ZIL/USDT pair after the launch of the ZIL metaverse, ‘Metapolis,’ and recent partnership with other firms registered a 371% gain in just six days. As a result, the altcoin reached a high of $0.231 on 1st April, Its highest in the last eleven months.
However, the coin chart displays a long rejection candle at $0.231 resistance, indicating the sellers are restricting any further growth from this point. These failed attempts from buyers suggest they are exhausted, and a minor correction is needed to renew the bullish momentum.
As per the Fibonacci retracement level, the traders can expect the pullback support to $0.157(0.326 FIB) or $0.136(0.5 FIB).
Technical indicator
The Relative Strength Index(54) slopes have surged straight to the overbought territory, indicating overvaluation of the coin rice. This bolsters the possibility of a minor retracement to stabilize the aggressive buyers.
The perpendicular rally has surged the ZIL price high above the exponential moving average(20, 50, 100, and 200). However, the coin price should keep a reasonable distance from its moving average to maintain a healthy bull run, which also signals a potential pullback.
- Resistance levels- $0.221, and $0.256
- Support levels are $0.157 and $0.136
