Hi friends, hope you are well and welcome to the new update on the Zilliqa coin.
In the previous article, we have seen that the price action of Zilliqa found a weak bearish and then bullish cloud resistance of Ichimoku cloud on the weekly chart. Therefore, there was a strong possibility for a big breakout. Finally, the price action turned strong bullish and produced a more than 215% rally in the US dollar market and 185% in the Bitcoin market.
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The previous idea before execution:
Previous idea after execution:
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The price action is at EMA supports:
Now on the daily chart, the price action of Zilliqa coin is at the exponential moving averages with the time period of 10 and 21 supports. The priceline is using these EMAs as supports very well after Sep 2020.
The simple moving averages:
On the same daily chart, the simple moving averages 25, 50, 100 and, 200 have formed a complete opened alligator mouth, as we have the smallest simple moving average is above all and the biggest time period simple moving average is below the rest of the SMAs. So we can expect that this bullish rally won’t be ended unless this alligator’s mouth won’t be closed.
Different supports and resistance levels and rejection:
The price action has first crossed the $0.05 then $0.07 resistance levels and now rejected by the $0.09 resistance. At the moment, the candlesticks of Zilliqa’s priceline are using the previous resistance of $0.07 as support.
The formation of the down channel:
On a small time period 4-hour chart, the price action of Zil coin has formed a down channel and likely to take bounce from this support. There is also 100 simple moving average at the support of this channel that will be helpful for the price action to take bounce from this level. The volume profile is also showing less interest of traders below the support of channel and high interest above the resistance. The point of control (POC) of the volume profile is also above the resistance therefore, there are strong chances for the breakout.
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Conclusion:
Even though, the price action of Zilliqa has very powerful supports of $0.07 price level and the support of channel and 100 simple moving average as well. However, the support of this channel should be used as stop loss to minimize the risk factor, this advice is for the day traders of Zilliqa.
