Zilliqa has dropped more than 5% as a technical analyst warns the token could lose another 40% of its value, tumbling to $0.011 if the recent weakness continues. The coin soared 900% from March 16 low
Zilliqa has dropped more than 5% as a technical analyst warns the token could lose another 40% of its value, tumbling to $0.011 if the recent weakness continues. The coin soared 900% from March 16 lows of $0.003 to June 11 highs of $0.0289, making it one of the market's best performers over that span.
Crypto trader Sparkster published analysis flagging the recent rally as a potential top. The weekly chart shows red candles with declining RSI and falling MACD indicators, signals of a trend reversal. A breakdown past the $0.018 support level would confirm what Sparkster sees as the worst-case scenario.
Zilliqa ranks 44th on CoinMarketCap after crushing Bitcoin's 150% gain since March. Bitcoin itself failed to break above $10,000, leaving altcoins without the tailwinds they depend on.
If selling accelerates, Sparkster identifies interim support at $0.018 and $0.015 before a potential drop to the 61.8 Fibonacci retracement level at $0.014. Buyers would need to defend each level to prevent further declines toward $0.011, the extreme downside target Sparkster outlined.
Resistance for ZIL/USD sits at $0.020 and $0.022. Breaking past those levels would require bulls to overcome the 23.6% and 38.2% Fibonacci retracement levels. Over the past week, buyers have struggled to push through resistance at these key price points.
Other altcoins have made big gains in recent weeks. Compound jumped over 300% to break into the top 20 on CoinMarketCap, riding the DeFi surge that followed Black Thursday's March crash. This performance stands in contrast to Zilliqa's current weakness.
