- Zilliqa price has rallied 38% over the past three days, suggesting increased bullish momentum.
- The supply zone extending from $0.133 to $0.145 will be a significant hindrance to the upswing.
- A rejection at the said supply area will lead to a 25% correction to $0.100.
Zilliqa price has seen a massive run over the past week as it attempts to break through a critical resistance zone. The decline that followed the previously failed attempt on May 27 was cut short as bulls stepped in. Therefore, investors can expect ZIL to be successful this time.
Zilliqa awaits a trigger
Zilliqa price faced rejection thrice between May 26 and 27 as it attempted to slice through the supply zone, ranging from $0.133 to $0.145. However, a failure to overcome the sellers pushed it down 30% to the support level at $0.100, where the buyers halted this bleeding.
The upswing resulting from this barrier has propelled ZIL by 38% to where it currently trades, $0.128.
Due to the premature reversal in Zilliqa price, investors can expect the rally to breach through the said supply zone. A decisive 4-hour candlestick close above $0.145 will signal a breakout and the start of an upswing.
Such a move would further catapult ZIL upward by 46% to a resistance level at $0.174.
Adding credence to this uptrend is the recent recovery above the 100 four-hour Simple Moving Average (SMA) at $0.122. Moreover, the 50 four-hour SMA is already curving to the top, suggesting that the short-term momentum is rising.
The 200 four-hour SMA at $0.167 could also be a potential target of this run-up.
ZIL/USDT 4-hour chart
The bullish narrative is not set in stone. Therefore, Zilliqa price has a chance of heading lower if the bulls get overwhelmed by the selling pressure.
In such a case, ZIL might crash 25% to tag the immediate support level at $0.100. A convincing four-hour close below this level might invoke another 20% sell-off to $0.080.