Zilliqa (ZIL) Technical Analysis: Showing Early Signs of Movement Ahead of Mainnet Launch
Zilliqa has managed to survive the recent end-of-week correction, and is currently up 3.01% against BTC despite $5 billion leaving the market. This is one of the first times the project has stood out above the rest of the altcoin market in recent months, after it struggled to regain composure when it fell from its all-time high in May.
Right now it seems that sentiment is finally starting to show signs of improvement ahead of the Zilliqa Mainnet launch scheduled to go live on January 31st. This major milestone development has been long-anticipated by ZIL traders since its official announcement back on November 8, and could help rekindle investor interest in the project. The Mainnet launch will see ZIL finally migrate across from an ERC-20 token on the Ethereum network, on to its own native blockchain, and will include the first live release of their original smart-contract language, Scilla.
On the 1D ZIL/BTC chart, we can see that Zilliqa has been range, bound between the 577 Sats and 350 sats levels since September 2018. Inside this range we can also see a number of interior key resistance/support levels at 391, 465 and 497 Sats that ZIL has been tracking faithfully as well.
After hitting bottom at 350 Sats on November 26 - during the heavy bear market caused by the Bitcoin Cash war - an optimistic Adam and Eve pattern formed which can be considered as a bullish reversal signal.
A classic Adam and Eve pattern is characterized by a sharp bearish spike (Adam) that retraces back to a neckline, followed by a parabolic movement (Eve). Once the Eve part of the pattern crosses through the neckline, a bull run usually follows. This is a variation of a bottom-bottom trading pattern and requires both the Adam and Eve sections to extend to the same lower level. On this occasion, we can see that the Eve part of the pattern did not fully extend to the 350 Sats line as the Adam spike did, so this is why it’s an ‘optimistic’ pattern.
Nevertheless, there are a number of promising bullish signals suggesting that a continuation is likely, provided investor support continues to build behind ZIL in the short-term.
-On the 1D Ichimoku indicator candles are now closing above the resisting kumo cloud along with a bullish T/K crossover. This is a very positive bullish reversal signal.
-The price action has recently crossed above the 100MA for the first time since July 2018.
-Parabolic SAR indicator dots are still appearing beneath the price action, indicating that bulls are still in control of the asset.
-Over 4H candles, the price action has just broken bullish out of a pennant pattern and appears to be starting a new impulse movement (see below).
Zilliqa (ZIL) Price Targets
All ROIs are calculated from the asset’s current value at 533 Sats
R1: 577 Sats (8.21% ROI)
R2: 589 Sats (10.37% ROI)
R3: 625 Sats (17.21% ROI)