ZIL is preparing for an upward move
Zilliqa (ZIL) created a double bottom and then broke a descending resistance line.
It is about to break through a short-term bullish pattern that could be a catalyst for an uptrend.
The ZIL has moved lower along with a descending resistance line since hitting $ 0.256 high on May 6th.
It hit a low of $ 0.06 on May 19 and then rebounded, creating a long wick underneath. This move confirmed the $ 0.065 area of support. On June 22nd, it returned to the same level, creating a double bottom. This pattern is associated with a bullish divergence in the MACD.
It has since turned up and broke a descending resistance line on June 28th.
Despite the breakout, ZIL was unable to sustain its upward trajectory. Conversely, it fell again to the USD 0.065 support area. In addition, both the RSI and the stochastic oscillator do not yet confirm the uptrend.
Daily ZIL / USDT chart | Source: TradingView
Trader @CryptoMichNL has sketched a ZIL chart indicating that the token is consolidating near strong support and predicting an upward move. Despite the double bottom described above, the token could not move upwards. Hence, it is necessary to look at the lower time frames to see if they will move any further up.
Short term wedge
The shorter-term 2-hour chart shows that ZIL has been trading within a descending wedge since June 30th. On July 14, it touched the wedge’s support line and bounced upward.
The upside move also helped restore the small support area of $ 0.066 (red circle).
ZIL is currently breaking the wedge. In addition, the MACD has created a bullish divergence and the RSI is rising.
The next area of resistance is at $ 0.074. If the price manages to break this level, the token will likely rise to a high at $ 0.087.
ZIL / USDT 2-hour chart | Source: TradingView
ZIL / BTC
In March, ZIL broke out above a descending resistance level (dashed line). Since then, price has returned to this line three times to confirm it as support (green symbol), most recently on June 22nd.
It looks like ZIL is currently moving along another descending resistance line. The combination with the dashed resistance line creates a descending wedge known as the bullish pattern.
This indicates the possibility of an outbreak. While the MACD has produced a bullish divergence and the Stochastic oscillator has produced a bullish cross, the RSI is still below 50.
If there is an outbreak, the next resistance is 355 satoshis.
ZIL / BTC daily chart | Source: TradingView
Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
According to Beincrypto