Zilliqa (ZIL) Technical Analysis: Edging Closer Towards Maximum Consolidation Inside 337 Day Pattern
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Zilliqa’s price appears to be a matter of weeks away from reaching maximum consolidation inside a 330+ day falling wedge reversal pattern, on the daily chart against BTC pairing.
The #43 cryptocurrency, which is currently trading at around 282 Sats, has been held in year long downtrend since correcting from its all-time high way back in May 2018, at 2508 Sats (-88.76%). But things could be about to change for this project.
Right now ZIL has secured a 1.97% gain against the US dollar, but is trailing slightly behind Bitcoin by 0.47%.
Zilliqa (ZIL) Price Analysis
On the daily ZIL/BTC chart we can see all the necessary components of a bullish falling wedge reversal are in place.
Firstly, we have an initial downtrend which lasted for more than 3 months after ZIL’s price corrected from its ATH. Then, around July 2018, the downtrend began extending into a falling wedge pattern between a sloping support and resistance, for the next 11 months.
During the last 11 month period, the asset has firmly established an upper resistance and a lower support on at least two occasions, and both levels have continued to constrict the price action towards a consolidation point.
What we can also see is that buying volume has now started loading up significantly behind the asset (red volume area), as traders begin to accumulate ahead of the breakout. The MACD indicator is also looking very bullish right now, as both moving averages converge above the signal line for the first time since March.
What we should expect from this is Zilliqa to continue consolidating until it reaches the breakout zone (green shaded area), which sits between the 200 and 230 Sats. From here, it’s likely that new bullish support will arrive at the psychological 200 mark to initiate the opening bull run. In order to confirm that the reversal is truly underway however, we must first wait until we see candles close confidently above the upper resistance on the 2/ 4 hour chart.
Zilliqa (ZIL) Price Targets
All ROIs are calculated from the asset’s current value at 282 Sats (AToW).
PT1: 350 Sats (25.00%)
PT2: 500 Sats (78.57%)
PT3: 680 Sats (142.86%)