Zilliqa (ZIL) price is consolidating above a descending support line over the past month and may start a short term upward movement soon. However, there is no long term bullish reversal sign yet.
The price of ZIL has been declining since reaching an all-time high of $0.254 in April 2021. After an unsuccessful attempt to initiate a reversal, the price reached a lower high (green icon) and subsequently fell at an accelerated rate. The fall so far in October 2022 has led to a low of $0.027.
During the decline, Zilliqa price followed a descending support line, which now coincides with the $0.025 horizontal support area. The most recent time the line was touched was in June 2022 (green sign).
The weekly RSI is not showing any bullish reversal. Although it used to generate a Bullish Divergence (Green Line) earlier, the trend line has now been broken. Additionally, the indicator is below 50.
Therefore, technical analysis from the weekly time frame gives a bearish ZIL price prediction. This indicates that the price will decline towards the $0.025 support area.
ZIL price prediction favors short-term relief
The daily time frame price action shows that ZIL price is following a descending support line, similar to the weekly time frame.
While it is possible that the price is also trading inside a descending wedge, the resistance line of the wedge (dashed) has not been validated enough times. Therefore, the validity of the pattern cannot be confirmed.
In any case, the daily RSI has been creating a bullish divergence over the past two months. This is a signal that favors a breakout for the future price. It will be confirmed with an RSI rise above 50.
In that case, Zilliqa price is expected to move towards the nearest resistance at $0.037. However, due to bearish readings from the weekly time frame, further downside can be expected.
Conversely, a persistent daily close above the $0.037 area would invalidate the bearish prediction.
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