Zilliqa rose to popularity for adding staking and yield farming features to its public blockchain. As of July 2022, the ZIL token is worth $529,010,561, with just 62% of its entire supply entering the liquidation. Ranking at 74th position, ZIL has projected a higher potential to accommodate smart contracts and transaction processing and support decentralized applications.
While it touched a high of $0.25 in May 2021 and succumbed to $0.05 by December 2021, the price took a huge jump during the release of Metapolis, the virtual ground supported by the Zilliqa blockchain. The prices took a tremendous jump in just seven days but quickly faded to pre-breakout levels of $0.05, which even breached $0.03 in June 2022.
Zilliqa has failed thrice to surpass the trend line since the breakdown of May 2022. Comparing the current trading prices with the last two month’s price action, the outlook is consolidative, with a lack of buying sentiment evident from the volume transactions on the charts. Read more to know if the demand and transaction volume of the token will increase or decrease!
Zilliqa’s first attempt to surpass the resistance level failed after a huge upside movement from its swing low. Profit booking took place based on a pullback witnessed from all-time lows in such a short interval. Zilliqa was supposedly on a consolidative movement for almost three weeks and again attempted to breach the negative trend line indicated in the purple line. This time again, ZIL lost its buying rally, and losing value in such a small swing indicates the price outlook as negative for the immediate term.
After looking closely at the price action, it can be seen that ZIL has formed a bearish engulfing candle. A bearish engulfing candle happens when a positive candle is out shadowed on both upside and downside by a red candle.
Moreover, since the initial price action of July 20 was positive in outlook, which turned into a marginal negative candle, the wick formation played a crucial role in creating a negative outlook. Following the price trend, the candlestick pattern has become even more bearish.
Buyers should wait for a much clearer outlook and confirm the sentiment. While MACD fails to enter the positive axis, RSI has taken a V-shaped decline. For the sentiment to sustain the support levels and bounce back, a bullish engulfing candle needs to be formed.