ZIL [Zilliqa] bulls need to overcome this level to reach its ATH
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.
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.
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.