Zilliqa (ZIL) Technical Analysis: Why ZIL is the Quiet Coin to Watch in Q4

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Zilliqa is a highly scalable dApp platform that hasn’t made an awful lot of noise in the market lately, but could become a solid performer in Q4 and early 2019. Zilliqa is ranked #35 on the CMC leaderboard and boasts some impressive features, including high network throughput capabilities that can process over 2,828 t/ps. The project landed a strategic partnership with Japanese software company, Infoteria, in early August which will help drive the mainstream adoption of the Zilliqa blockchain across wider industries once Zilliqa migrates on to its own mainnet.

The project’s native token, ZIL, surged quickly off the back of a speculative short-term trading frenzy and became grossly over-inflated not long after it arrived on the Binance exchange in March this year. Once the speculation had reached fever pitch, short-term traders began exiting in droves and the asset has since struggled to recover composure. To add further injury to this decline, the project last monthannouncedthe postponement of their eagerly anticipated mainnet launch until late December/ early January after identifying further work that needed to be done prior to the migration.

Right now ZIL is priced at $0.03, having recently found the bottom after a long decline. A return to its ATH at $0.23 would represent a 666% gain. With ZIL at one of the cheapest price points we’ve seen and with its mainnet due sometime at the end of the year, it could be a great time to get in early ahead of the crowd.

Diving into the 4hr ZIL/BTC chart we can see that the asset has started to hold a sideways trajectory over the last week, which could potentially be a sign that bearish traders have finally thinned out after months of strong selling pressure.

This movement has also allowed the 50 EMA to close in on the 200 EMA, as buying momentum starts to return to ZIL. A convergence between these two lines would give us a ‘golden crossover’ and signal a strong bullish reversal.

As we approach the mainnet launch over the next three months, there are three main zones that should be observed where ZIL will most likely find strong support/ resistance.

• Resistance Zone 1: This is the top bull target for Zilliqa as we head into Q4, between the 693 Sats mark and 741 Sats. Historically, these levels acted as both support and resistance for the asset during the ATH bull run and the pullback after the recent Infoteria partnership announcement.
• Resistance Zone 2: This resistance region between 537 Sats and 575 Sats played a key role recently in supporting the small descending triangle pattern that formed during September 6th - 11th (see below). The lower level of this region at 537 Sats has been acting as a strong resistance level over the last two weeks and has prevented ZIL from breaking back into $0.04.
• Buy Zone: The best buying area for this asset sits between the two lowest major support levels at 478 Sats and 397 Sats. If ZIL fails to retest the 537 Sats mark again, we could see the asset briefly dip back into this region and signal a good entry point for mid-long term traders.

Right now ZIL is meandering between the top support of the buy zone region at 478 Sats and the lower resisting level of the first resistance channel above at 537 Sats. In the absence of any recent news or announcements this month, it is likely that ZIL will continue to oscillate between these two levels until the project delivers something for the community to get bullish about.