The price of Zilliqa has dropped dramatically, indicating a lack of buyer interest.
An upswing is more likely if the price recovers above the range low of $0.0693.
The bullish thesis will be invalidated if ZIL breaks through the $0.0549 support level.
The price of Zilliqa has showed modest resistance to the sell-off, resulting in a persistent fall. To have any hope of moving higher, ZIL must now recover over a critical barrier.
Between June 20 and July 16, the price of Zilliqa fell 30% from $0.097 to $.069, tagging the range low at $0.069 many times. Despite the fact that ZIL fell below this level, recoveries have kept the altcoin above it.
As a result, investors should keep in mind that a quick recapture of $0.069 will signal the presence of buyers and open the door to a 25% increase to $0.0853.
If the bullish momentum continues to build following this climb, Zilliqa will hit $0.096, representing a 38 percent gain. In certain circumstances, ZIL may sweep above this level to accumulate liquidity, signaling the start of a pullback before a new leg higher.
If the market is optimistic, Zilliqa will make a push for the 50% Fibonacci retracement level at $0.108.
6-hour chart of ZIL/USDT
Regardless of the optimism and hope, a failure to break through the range low of $0.069 will disclose bears’ plans to drive ZIL lower. The last line of defense is the immediate support level of $.060.
A bounce off this barrier could start an impulsive wave, but a break would contradict the bullish argument. If selling pressure remains high following this development, Zilliqa’s price could reach $0.050./n
