- Zilliqa (ZIL) has posted 950% gains since March
- The digital asset has beaten Bitcoin in terms of gains since March
- Zilliqa is due for a correction after it’s fantastic run since March
Zilliqa News Today – one token has been bullish since March. The digital asset Zilliqa has now posted 950% gains since the March price crash. This means Zilliqa is due for a price correction after it posted monstrous gains in the last few months. Besides, the price of ZIL is running into several resistance areas on the charts.
The currently 40th ranked digital asset by market cap, has seen a massive surge in price that took its gains to 950% since the flash crash in March. These are good times for the digital asset. However, there is also the question of whether Zilliqa’s monster rally has finished or is just getting started?
Zilliqa’s Market Performance on the Daily Chart
Zilliqa rose to $0.02 after hitting $0.0022 in March. This a price surge of 950%. It is one of the biggest surges in recent times. However, the chart shows, that Zilliqa’s price is currently in a resistance position and it’s not expected to post any further move upward. According to the daily chart for ZIL/USD, the price of the digital asset is now back inside a range pattern. This range structure has resistances at the $0.022 and $0.025 price position.
Meanwhile, the trading pair found its support levels at the $0.012 and $0.015 price positions. For the price of ZIL, the potential for an upward action in the short-term is lower when compared to the chances of a potential correction downward. It is likely, that a corrective move to the levels between $0.012 and $0.015 will occur. This could provide a healthy and natural correction before the coin sees a new impulse wave upward.
Watch Out for a Trend Reversal
The potential setting for a trend reversal can be split through a bearish divergence formation. Usually, an uptrend nearly always ends via signals from indicators in a bearish divergence alongside a rising wedge (and against a resistance position) is a huge signal for downward price action. This is why, to sustain any momentum upwards, the price of Zilliqa must remain above the $0.019 area.
If it succeeds, then another push to the resistance areas at $0.023 and $0.025 will likely occur. Traders should lookout for a top structure in this resistance position in which the bearish divergence would act as a signal. Hence, the last push will move without a decrease in volume. Instead, it will make a rising wedge, and end in a drop.
Princess Ogono is a writer, lawyer and fitness enthusiast. She believes cryptocurrencies are the future. When she's not writing, she spends time with her adorable cat, Ginger and works out often.
