Zilliqa remains one of the poorest performing assets in the top 30 cryptocurrencies today, down -2.32% against BTC as the market starts to make a slow recovery from the recent decline.
Having recently revealed their new smart contract language, Scilla, and their latest partnership with global media agency, Mindshare, it’s surprising that ZIL token is still in the red. Looking ahead at their short-term roadmap we can see that the market should start to shift again soon in Zilliqa’s favour, with the project’s smart contract alpha and V2.0 testnet expected to launch sometime soon over the rest of Q2.
Let’s take a look at the charts to see where these next developments could take us.
Overview
In the 1hr ZIL/BTC chart above we can see that ZIL found the bottom at the 0.786 fib level (1357 Sats), after a long bearish decline from its recently achieved all-time high, on May 10th.
After failing to test the upper 0.618 fib resistance, we can see that the candles are starting to fall into bullish pennant pattern, with lower lows and lower highs
This bullish breakout pattern is further supported by the 22 EMA (yellow) arching back towards the 50 EMA (blue), as buying momentum is starting to build behind ZIL.
Over 15 min candles, the MACD indicator is also showing a consolidating pattern, with momentum pinching along the signal line along with thinning volume.
RSI is uptrending too, into the center of the channel.
The price action is also starting to climb through the bearish kumo cloud on the Ichimoku indicator, along with an early T/K-Sen crossover.
The Road Ahead
The pattern will need to overcome bearish opposition from the 0.618 fibonacci resistance above at 1,558 Sats before continuing, but should break through comfortably if similar support can rally behind ZIL as it did earlier this month.
From there, it’s likely that we’ll see some sideways movement as ZIL ricochet’s off the strong 0.5 fib resistance at 1,700 Sats and oscillates along the supporting area.
If ZIL finds itself back along the lower support after a second unsuccessful breach of the upper fib resistance, then it’s likely we’ll see bullish traders under increasing pressure as the asset reaches a critical interpass.
This will be very similar to the current VeChain activity that has already been revised in an earlier analysis, where the asset failed to excite investors during a bearish market and fell below the rebounding support area as a result.
Timing will be crucial for Zilliqa in delivering their stockpile of new Q2 and Q3 developments, to inspire bullish support. Having a roadmap without specific launch dates does have a significant advantage over other roadmaps that work to tight schedules and countdown timers, in that they can hold back their important news updates during times of poor market performance or overshadowing news.
Zilliqa (ZIL) Price Prediction
Provided mainstream media FUD, poor BTC performance and alt-coin overshadowing doesn’t damage Zilliqa’s chances of a recovery, then we should see the first wave of bullish support take ZIL to the 0.382 fib level at 1,841 Sats (18.16% ROI) from the critical area.
If, however, they do get the timing wrong, then it’s likely that we’ll see ZIL plummet back to the lower 0.786 fib support at 1,357 Sats, to deliver a -12.90% loss from the critical area.
This article appeared first on Cryptovest
