Zilliqa price shows signs of recuperating from its losses as it approaches a stable support area. This retracement comes as the Bitcoin price crashes below a significant foothold to collect liquidity. Fortunately for ZIL, this pullback has pushed it into an area where buyers are willing to step in.
Another massive uptrend?
Zilliqa’s price rallied 385% in less than two weeks, starting on 24 March. This exponential upswing set a swing high at $0.23 and was met with investors booking profits on 1 April, leading to a 47% crash.
This retracement has pushed the altcoin to retest the daily demand zone that ranges from $0.097 to $0.121. The said area is usually where unfilled buy orders are present. Therefore, a move back into this zone is likely to trigger another buying spree.
Investors can expect Zilliqa’s price to kick-start another run-up to the recent swing high at $0.23. However, this move will not be without hurdles as the bulls need to overcome the $0.152 resistance barrier to reach its 30 March swing high. Clearing this blockade will open the path for Zilliqa’s price to make a run at the all-time high formed on 5 May at $0.256.
In total, this rally would constitute a 110% gain.
Source: TradingView, ZIL/USDT 2-day chart
Supporting this uptrend for Zilliqa’s price is the recent plateauing of the on-chain volume by around 1.44 billion. At its peak, the volume was hovering around 9.65 billion and has since dropped 85%. Regardless, the volume is showing promise of reversal as it rallied from 1.44 billion to 2.22 billion over the last 48 hours.
This development is in line with the outlook from a technical standpoint and indicates that investors are coming back to the network. While this setup is bullish, the social volume seems to have died out.
This index nose-dived from 161 to 14, denoting a 91% downtick. The sudden dearth of social presence among investors indicates that the returning investors could be institutional and not retail.
Source: Santiment
Regardless, investors need to wait for the Bitcoin price to stabilize to see some bullishness for the Zilliqa price. Moreover, the upcoming FOMC meeting on 7 March could be a key in invigorating a rally for the big crypto and hence altcoins, including ZIL.
