Zilliqa price tanked 15% after it peaked Wednesday.
ZIL is nearing vital support that will keep this rally alive.
Expect to see a test and bounce higher for ZIL.
Zilliqa (ZIL) price sees bulls taking a step back as they show some fatigue in their rally that has been ongoing since March. Although a 15% slide looks threatening and scary, the rally is still in good health and shows no signs of ending anytime soon. With the Relative Strength Index (RSI) nosediving, the next bullish spike could be the one that takes out $0.037 and lifts profit by over 20%.
Zilliqa price has bulls taking a small pause before picking up pace again
Zilliqa price is undergoing quite a fade after price action peaked near $0.036 and did not make it up toward $0.037 for a retest of the high of February. Instead, a big fade got underway that is currently trading over 13% to the downside. With that sell-off, the RSI is taking a plunge as well and is already below 50, heading toward oversold territory.
ZIL sees perfect momentum being created for a new spike higher as support is set to come in at the green ascending trend line near $0.030. Even if that level does not hold, the pivotal historical level at $0.029 and the 55-day Simple Moving Average (SMA) can do the trick. The quick spike up could be proven an even bigger one on Tuesday and might take out $0.037 with a 20% gain in the pocket.
The threat of more losses could come if even that 55-day SMA does not hold the line near $0.029. That 13% loss could double to near 30% if the 200-day SMA at $0.026 fails to step in and save the day, while $0.023 would be catastrophic for bulls. In case ZIL tanks all the way toward there, that means a 40% sell-off as bulls are squeezed out of their position.
