Zilliqa (ZIL) has experienced several attempts to break above the $0.0165 level since the beginning of the year, but each rally has been followed by significant losses. However, last week, ZIL price dropped below $0.0165, but managed to regain strength and closed daily above this level. If the upward momentum in ZIL continues, the next resistance level will be $0.02.
What are the Recent Developments in ZIL?
Currently, ZIL price is struggling to break above the resistance line. While such high volatility price movements are often seen as a bullish sign by many analysts, they can also lead to a reversal of the trend. In any case, ZIL price must break above the resistance level to confirm a reversal of the upward trend.
Despite the recent rally, the RSI level in ZIL is still undecided. RSI is a momentum indicator used in technical analysis. It allows investors to assess whether an asset is in the overbought or oversold zone. An RSI level above 50 indicates a significant opportunity for an uptrend, while a level below 50 suggests investors are selling the asset, which is a negative sign.
Currently, the RSI level in ZIL is below 50, despite the increase. A close above the resistance line and an RSI level above 50 would confirm the bullish trend.
New Price Target for ZIL
The daily chart analysis of ZIL supports the continuation of the uptrend, and this can be attributed to two reasons: Firstly, a double bottom formation was observed on the chart. This is considered a significant bullish pattern in technical analysis. The double bottom formation occurred after an increase that revisited the horizontal support area at $0.0165.
The second reason is the convergence of the double bottom with the rising average of the RSI level (green line). This combination indicates a price decline accompanied by an increase in momentum, which is a bullish indicator. It often leads to a reversal of the downtrend. In the case of the ZIL chart, it resulted in a breakout from a short-term descending resistance line.
If the upward momentum in ZIL continues, the next resistance area will be $0.02. This would require a nearly 13% increase in ZIL price.
