The last few days have seen ZIL compress at the 61.8% Fibonacci level ($0.108). While the market did see a clash between buyers and sellers, some of its indicators took a bullish outlook. Furthermore, considering the bullish falling wedge setup, these signs looked encouraging for the altcoin.
If the price holds above the key area while bulls defend the golden Fibonacci support, an upwards breakout would be likely. But with the decreasing volumes, the bulls needed more thrust to propel this trend-altering rally. At press time, ZIL was trading at $0.12, up by 8.93% in the last 24 hours.
ZIL Daily Chart
Since the beginning of the year, the altcoin had been on an aggressive downslide. ZIL lost over 60% of its value from its December highs and plummeted towards its 14-month low on 24 February.
After announcing the commencement of its Metaverse project, ZIL witnessed an exceptional 456.9% ROI between 21 March and 1 April. Then, after facing strong rejection of prices at its ten-month high mark, the alt descended by making a bullish falling wedge on its daily chart.
The recent revival from its Point of Control (POC, red) would position the alt to test the $0.134-mark. For bulls, holding on to that mark will be critical for yet another market rally. In an unfavorable outcome for the buyers, the alt could see itself hovering around the POC in an extended squeeze phase.
ZIL’s indicators displayed mixed signals with a preference for a near-term bullish movement. The Relative Strength Index looked north after finally escaping its low volatility and neutral position near the midline. A close above the 51-61 range would set the token up for a potential rally above $0.13.
Additionally, the Aroon up (yellow) kept sweeping the zero-mark for the last five days. A likely resurgence from this level would favor the bulls in the days to come.
However, the CMF revealed a rather weak money volume situation in the crypto ecosystem. Any reversals from its resistance would confirm a bearish divergence. Thus, sustaining the bull run could be tricky for the buyers.
Considering the healthy readings on the RSI and the sturdiness of the 61.8% Fibonacci support couples with POC, ZIL could eye for further recovery. Potential targets are between the $0.13-$0.17 range. But with the decreased volumes and a weak CMF situation, the bears could pose hurdles along the way.
Nevertheless, investors/traders must keep a close watch on Bitcoin’s movement affecting the overall perception of the market.