[ad_1]
Key Takeaways
Zilliqa has risen by nearly 370% over the past week.
Now, sell signals are appearing.
A spike in profit-taking could push ZIL to $0.155.
Share this article
Zilliqa has soared in price over the past week. Although trading volumes remain high, several signals point to a brief correction in the near future.
Zilliqa Looks Primed to Retrace
Zilliqa has outperformed the rest of the cryptocurrency market over the past few days, but the technicals show that a spike in profit-taking could be underway.
The Layer 1 token has been on a roll lately, surging by nearly 370% over the past week. ZIL entered a parabolic rally last week when the project announced a partnership with Agora for its Metaverse as a Service platform, Metapolis.
ZIL was trading at a low of $0.047 and went on to hit a high of $0.22. Given the magnitude of the breakout, several technical indicators suggest that the token is now sitting in overbought territory.
The Tom DeMark Sequential indicator has presented a sell signal on Zilliqa’s four-hour chart. The bearish formation developed as a green nine candlestick, which is indicative of a one to four candlesticks correction. A spike in selling pressure could validate the pessimistic outlook, pushing ZIL to $0.155 or even $0.13.
Moreover, a bearish divergence between Zilliqa’s price and the Relative Strength Index has formed on the four-hour chart. While ZIL has been making a series of higher highs, the RSI has been trending downwards. Such market behavior is indicative of waning bullish momentum.
Source: TradingView
Despite the mounting sell signals building on Zilliqa’s four-hour chart, traders will be looking out for another bullish breakout. A decisive candlestick close above the recent high at $0.22 could have the strength to invalidate the short-term pessimistic outlook and lead to further gains. Breaching the critical resistance area could push ZIL toward $0.28 or higher.
Disclosure: At the time of writing, the author of this piece owned BTC and ETH.
Share this article
The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
See full terms and conditions.
NFT Express: Your on-ramp to the world of NFTs
At Tatum, we’ve already made it super easy to create your own NFTs on multiple blockchains without having to learn Solidity or create your own smart contracts. Anyone can deploy…
What Bear Market? Zilliqa Rallies 116% on Agora Tie-Up
Zilliqa’s ZIL token has outperformed the rest of the market in the past 24 hours after the blockchain startup revealed a new partnership with the global talent awards app Agora. …
2017-Era Layer 1s Are Showing Signs of Life (Somewhat)
EOS, Zilliqa, and Internet Computer, three early Layer 1 crypto networks, are gaining bullish momentum. The recent gains could extend over the week as resistance weakens. EOS Makes a U-Turn…
What Is Zilliqa? Introduction To ZIL
What Is Zilliqa? Zilliqa is a cryptocurrency project that aims to make blockchains faster and more scalable. It uses sharding technology to streamline the consensus process, so that Ethereum and…
[ad_2]
Source
