Zilliqa has experienced an impressive rally since the Coronavirus crash of mid-March.
Staking officially went live on KuCoin on the 18th of June.
All bets were on ZIL breaking the $0.03 resistance zone.
However, this area has proven to be a difficult one to break and could be due to the introduction of the ZIL Perpetual Futures on Binance allowing traders to short the coin.
Zilliqa (ZIL) has had an incredible run in the crypto markets since bottoming out in mid-March during the Coronavirus crash. From the local low in March to its recent high of $0.03, Zilliqa has managed to give a return on investment of 13.3x for anyone who perfectly timed both the bottom and the top.
Recent Developments are Reasons to Stay Bullish
Additionally, the Zilliqa project has had very significant developments in the second quarter of 2020. To begin with, staking recently went live on the KuCoin exchange with Binance also on the list of major exchanges supporting ZIL staking in the near future.
Furthermore, Ethereum Classic miners can opt to also mine Zilliqa in a dual mining process courtesy of Ezil.me. This method of mining automatically switches between the two blockchains during specific times of the day.
Zilliqa’s Hopes in the Crypto Markets Lie with the 50-Day M.A
To top it all off, the crypto exchange of Binance recently introduced the ZIL/USDT perpetual contract. It is with this contract that traders can now long or short Zilliqa with a leverage of up to 50x. It is therefore easy to argue that the recent availability of the option to short ZIL/USDT might be behind Zilliqa’s wows in the crypto markets.
However, all is not lost for bulls as the 50-Day moving average provides clues as to Zilliqa’s next moves in the markets.
Further checking the Daily ZIL/USDT chart courtesy of Tradingview, the following can be observed.
The 50-Day moving average (white) provides adequate support at around $0.014. This price level of the M.A will change but the main focus should be the 50-Day moving average.
Other short term zones of Zilliqa at its current price of $0.01795 include the following: $0.0164, $0.014, $0.01132 and $0.0093.
Trade volume is in the red and decreasing further pointing to a bearish scenario for Zilliqa.
MACD has also crossed in a bearish manner and the MFI is also pointing towards a correction.
Zilliqa has had a brilliant ride in the markets since the Coronavirus crash due to several fundamental bullish factors. However, the $0.03 resistance level proved to be a difficult hurdle for the coin to break. Therefore, in the short term, the 50-day moving average might be a crucial support zone for ZIL/USDT to experience a bounce providing relief for bulls.
As with all technical analyses of Zilliqa, investors and traders are advised to have an eye out for any major moves by Bitcoin that might cause havoc in the crypto markets. Additionally, stop losses are advised to protect trading capital.