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Zilliqa (ZIL) has outperformed Bitcoin by 950% since March. What’s next?

June 9, 2020

While the price of Bitcoin (BTC) has consolidated below $ 10,000, some altcoins have shown huge setbacks, such as Theta Token (THETA) and Zilliqa (ZIL).

In particular, Zilliqa, the 40th cryptocurrency by market cap, has risen 950% since the March collapse.This justifies an analysis to determine if ZIL’s monstrous rebound has ended or is just beginning.

Daily performance of the crypto market

Zilliqa (ZIL) has outperformed Bitcoin by 950% since March. What’s next?Zilliqa (ZIL) has outperformed Bitcoin by 950% since March. What’s next?

Daily performance of the crypto market. Source: Coin360

Zilliqa is heading towards USD 0.02 after hitting a floor of USD 0.0022 in March

After Zilliqa hit its cycle low of $ 0.0022, the cryptocurrency rebounded massively toward $ 0.02. That is an increase of 950% and one of the largest in the recent past.

As the graph shows, the Zilliqa price is currently in a resistance area where no further upward movement is expected.

ZIL USD 1-day chart

1-day ZIL / USD pair chart. Source: TradingView

As shown in the graphic, the Zilliqa price is again within an area structure. The resistances in this area range from $ 0.022 to $ 0.025, while support levels range from $ 0.012 to $ 0.014 to $ 0.015.

Does this mean that you would buy the coin here on the market since it has worked well in recent times? No, when trading, it is always helpful to plot and analyze the price history of a particular asset before you decide to trade.

In the case of ZIL, the short-term upside potential is less than a possible downward correction. So what levels should you be at?

A correction move towards $ 0.012 to $ 0.015 would most likely be common and would bring about a healthy and natural correction before a new wave of upward momentum can unfold.

The possible scenario to observe a turnaround

A likely scenario for a trend reversal can be classified by a declining divergence structure, as shown in the graph.

ZIL / USD 1-day chart

1-day ZIL / USD pair chart. Source: TradingView

Typically, an upward trend ends with indicator signals where declining divergence combined with a rising wedge (and generally against resistance) is a significant signal for the falling pulse.

Consequently, To maintain momentum, the Zilliqa price must remain above $ 0.019. If it succeeds, another push into the resistance zones at $ 0.023 to $ 0.025 is likely.

Traders need to look for a possible higher structure in this resistance area, where declining divergence would be one of the signals. In this sense, the last pressure moves regularly without volume or volume reduction. It forms an ascending wedge that ends in a drop.

What are the interesting areas that can be seen in the coming months? Support ranges of around $ 0.012 and $ 0.014 to $ 0.016 should be considered for a potential buying opportunity in the fall. If Zilliqa exceeds $ 0.025, the next resistance zone is between $ 0.047 and $ 0.053.

The ZIL BTC pair breaks out of the 10-month accumulation range

ZIL / BTC 1-day chart

1-day ZIL / USD pair chart. Source: TradingView

The Zilliqa BTC pair shows a constructive accumulation range of ten months. The break in this area led to a significant recovery as the Zilliqa price recovered 330% over the BTC pair.

What are the signs of how these movements can occur? One of the significant signals for a possible rise is support for the 100-day and 200-day moving averages (MA), which are a key indicator of bull / bear movements.

The next massive sign of further upward rallies is the change in support / resistance at 0.00000095 SatoshisSince then, this level has offered resistance for several months.

ZIL / BTC 2-day chart

2-day ZIL / USD pair chart. Source: TradingView

The resistance of 0.00000095 Satoshis was tested several times in the previous year. The more often a resistor is tested, the weaker the resistance becomes when the sellers wear out. Since 0.00000095 Satoshis switched from support to resistance, the price has recovered significantly by 150%.

While larger peaks generally occur quickly, the recoil can take a while. ANDA correction in Zilliqa is likely to result in the previous support areas at 0.00000160-0.00000170 and 0.00000127-0.00000138 Sats being potential areas to seek support.

But Zilliqa is not the only old coin that looks bullish. Before the outbreak, other diagrams look identical to ZIL. One of these old crypto coins is Stellar Lumens (XLM), the 13th cryptocurrency by market capitalization.

Will Stellar Lumens follow Zilliqa and leave the accumulation area?

XLM / BTC 1-day chart

1-day XLM / USD pair table. Source: TradingView

The Stellar Lumens BTC pair shows a clear structure with limited range. In this case, the accumulation range has been in effect for almost a year.

The clear confluence with the Zilliqa chart, in which the 100- and 200-day moving averages (MA) have served as support since May. The resistance zone has also been tested several times. A renewed test of this resistance should lead to an outbreak.

With the price compressing in such a long range, a breakout will result in massive volatility and significant upward momentum. The following resistance zones are likely to be 0.00001200-0.00001250 and 0.00001525-0.00001600 Sats.

What to look for As soon as the resistance range between 0.00000860-0.00000910 is supported, a trigger is activated for a possible continuation upwards.

Is the XLM USD pair ready to rally towards $ 0.14?

XLM / USD 1-day chart

1-day XLM / USD pair table. Source: TradingView

The Stellar Lumens USD chart shows many similarities to the BTC pair. Strong upward trend since the March 12 collapse, while the resistance area has also been tested several times.

As long as the support zone is maintained at $ 0.071 to $ 0.0725, it is likely to continue rising. In addition, the range of $ 0.085 to $ 0.087 has served as resistance for a year. The next test at this level should lead to an upward breakout. The goals are defined with horizontal levels of $ 0.11 and $ 0.14-0.15.

The views and opinions expressed here are solely those of author and do not necessarily reflect Cointelegraph’s views. Every investment and trade movement involves risks. You have to do your own research when making a decision.