As the cryptocurrency market faces another bearish day, the price of Zilliqa shows a configuration that could generate massive gains for investors, according to analyst Akash Girimath.
According to their analysis, the charts show an optimistic configuration for the crypto asset:
“As the ZIL recovers from the stable demand zone, another up leg is likely to originate.”
To justify his analysis, he pointed out that the price of Zilliqa has grown by 503% in about two weeks, going from $0.038 to peak at $0.230.
“This massive rally started on March 14th. But it began to face headwinds on March 31 as a result of profit taking. As a result, the bears have taken over, leading to a 55% pullback to where it currently trades: $0.113,” he noted.
According to him, one of the main reasons for this capitulation of Zilliqa’s price was the instantaneous drop in BTC’s price at the end of March.
“The multiplied pressure from the sell side caused ZIL to mark the demand zone from $0.097 to $0.121. As values continue in this area, marginalized buyers who missed the initial run are likely to withdraw. So a resurgence of buying pressure is likely to trigger another rally.”
However, the analyst noted that this move may not be easy for a new bull run. This is because the $0.179 value is a strong hurdle for the cryptocurrency and represents a 60% rise from the current position.
In this regard, Girimath pointed out that a daily candlestick close to the $0.097 level will invalidate the $0.038 to $0.230 demand zone.
“This move would also create a lower low and invalidate the bullish thesis. In this situation, the price of Zilliqa will likely fall and fill the fair value gap of $0.097 to $0.050.”