In this post I want to talk about Zilliqa and some technical analysis that goes with it. Zilliqa is an interesting smart contract project that uses the technique “sharding”. They were one of the first, if not the first to launch their mainnet with the sharding technique. They can divide there network in different groups to make transactions faster. Furthermore they have a partnership with Unstoppable domains (.ZIL domains) and they are diving into DeFi as well with the creation of a DEX. Staking is also getting possible little by little, but this is new for Zilliqa, so it will take a little bit of time before it is all deployed.
The market cap of ZIL is around 194 million at the time of writing this post, so there is a lot of room for upside. Their all-time high was at 0,23$ and I expect that this will be surpassed in the years to come.
Here is a weekly chart of Zilliqa compared to the dollar :
I have put the indicator OBV (On Balance Volume). Volume preceeds price and OBV has been rising since the end of 2018 in this chart. It is showing great strength and price is actually holding inside the range of the two yellow lines (0,0255$ and 0,0146$). This tells me that we will see a great run upwards once we finally break the 0,0255$ level for good. You can see as well that I drew a sort of inverted “Head and Shoulders” pattern. This might be a confluence with OBV to confirm a move above 0,0255$. Another pattern you can see is a “Cup and Handle”, which includes in the drawing the head and the right shoulder. Either way a big move upwards seems likely to come in November/December if everything goes normal with Bitcoin. Targets to watch for are 0,035$/0,045$ and 0,05$. For longer term after December 2020 I will watch for 0,07$ and higher !
Here is a daily chart :
This is a daily chart with the indicator CCI (Commodity Channel Index) and I have put the Fib retracement levels. I have also drawn an orange line which was support during the recent rise, but is breaking down on the 14th of October. I expect Zilliqa to move towards the 0,618 fibonacci retracement level which is at 0,01632$ and this is a good opportunity to buy. The 0,786 fib level is around 0,0147$ and this is another good buy opportunity. Right now Zilliqa is battling the 0,382 fib retracement which is at 0,0184$, but I do expect it to fall down further. I am going to follow the CCI indicator like a hawk to see when it goes under the dotted line to create oversold conditions. If this coincides with the 0,618 fib level, expect a bounce !
Remember that a daily chart and for example 4-hour charts are there for shorter term moves in an asset. A daily chart can run for weeks which seems like a lot of time, but in markets it is not. Patience is needed and the weekly chart is looking very juicy. Keep an eye out for this Altcoin as it tries to stay relevant in the space with its sharding system, entering the Defi space and staking possibilities.
I am not a financial adviser and this is not financial advice. Please do your own research and make your own decisions.