- Zilliqa price witnessed a sharp rise overnight before bears attempted a sell-off near $0.10.
- ZIL crumbled under selling pressure, and proponents believe there is uncertainty in the token’s price trend.
- Analysts argue that the broad market trend in Zilliqa supports sellers and favors selling momentum.
Zilliqa price witnessed a 17% correction following a sharp rise overnight. Proponents believe massive profit-taking and high selling pressure were the key drivers of the recent pullback.
Zilliqa could crumble under pressure and plummet lower
Zilliqa price has experienced a dramatic U-turn after, first increasing, posting 46% gains overnight – then falling. After the sharp rise in Zilliqa price the token crumbled under intense selling pressure. Bears attempted a sell-off near the $0.10 level and wiped out overnight gains in ZIL. The altcoin is currently trading at around $0.076.
Proponents believe Zilliqa’s token ZIL is still currently in overbought territory. After its rally, the token reached a vital supply zone that prevented it from moving higher. ZIL faced a rise in selling pressure from traders booking profits in the $0.08 and $0.09 range. Analysts noted that Zilliqa’s market structure led to a clash between buyers and sellers at the $0.06 level.
Traders lined up to take profits above the $0.08 range, increasing the selling pressure on ZIL’s price alongside bearish momentum in Zilliqa.
The rationale behind the recent market correction is the mixed signals from Zilliqa’s indicators. The build up of buying pressure at the $0.06 level has offered investors hope of a short-term revival in ZIL.
Ali Martinez, a leading crypto analyst, evaluated the Zilliqa price trend and predicted a correction in ZIL since its drop from $0.11. Martinez believes the failure of a 12-hr candlestick close above $0.11 could send ZIL down to the channel’s middle trendline at $0.067.
#Zilliqa rebounded from the channel's lower boundary to the upper trendline. But to advance to $0.14, $ZIL must print a 12hr candlestick close above $0.11.
Failing to do so could result in a correction that sends #ZIL to the channel's middle trendline at $0.067. pic.twitter.com/zjaUeE96Kv
— Ali Martinez (@ali_charts) May 5, 2022
