Zilliqa is at a very important level on the weekly chart ! Can it break to the upside for massive gains ?

By Djordi | DJCrypto | 18 Aug 2020


Hi everyone,

In this post I want to talk about Zilliqa and the weekly chart which is showing some interesting things. Zilliqa was the first cryptocurrency to launch its mainnet in January 2019 with sharding for a scaling solution. Ethereum 2.0 will be trying to use this in the future, but Zilliqa is already doing it for more than a year. I have had my eyes on Zilliqa for a while now and have been investing small amounts every now and then. A while ago there were some issues with the Zilliqa team, because the CEO and the CTO both left the company. This made me skeptical and I stopped investing in it. In the meantime they are still hitting milestones and Zilliqa went on a great run price-wise. Zilliqa is also going to focus on the DeFi space and we all know what that could mean nowadays in terms of price ! Today, after a long while I decided to re-enter ZIL with a small amount and I will keep on watching it.

Here is a weekly chart compared to the dollar with the indicator OBV (On Balance Volume) :

9943ebc770626db8a2de535347b7b67fabd68191e96e9de7c6dae03f639a978d.png

OBV is looking really great for ZIL and is going higher and higher ever since 2018 ! OBV is way higher than when Zilliqa was at its all-time high of 0,235$ in terms of price. This looks very promising for the future and I believe it can reach higher than 0,235$ in the next couple of years, due to DeFi and other reasons.
You can see as well during 2018/2019 that OBV was moving upwards, creating higher lows, while price was making lower lows. These are big bullish divergences and often take a long time to play out (accumulation phases). We have seen a first great run for ZIL and right now we are at a cross-road on the weekly in terms of price, which is around the 0,025$ level. This level has shown some great resistance on the weekly ever since January 2019. It started first out as support on the 13th of August 2018 but after it went below it we can clearly see it as resistance. Zilliqa’s price run in May and June of 2020 ended at this level and right now we are once again there, hoovering around. We are either going to create a double top, which could lead to some nice downside, or we are going to consolidate a little while around it and then blast off upwards.

Here is another chart on the weekly :

754153efa0653ae51c5cd6d1b4bdec0ed62fa979fbdb00781e8c0f328ae398de.png

The indicator CCI (Commodity Channel Index) and the RSI (Relative Strength Index) are shown in this chart. You can see a couple of things. The CCI is relatively strong in showing when something is overbought or oversold. It is clearer for me than the RSI for example. Very often the CCI will show you when price is going to change direction. In a bear market it is to notice that price can stay oversold for quite some weeks and the same will go for a bull market where price can stay overbought for quite a while.
Right now price is a little bit lower than the previous top (wicks included) and so we did not create bearish divergences yet which is a good thing. Things are cooling down a little bit, which is a good thing as well. We have to be patience and let the indicators reset slowly towards the downside (consolidation phase) so that another big run will be possible. We can see that the CCI and the RSI are still in overbought territory, but only very slightly. If we can consolidate for the next couple of weeks and the indicator OBV will remain high, we should likely see a move towards the upside and breaking the 0,025$ once and for all. Turning this level into support will likely mean a next decent move towards 0,035$/0,04$ and after that the 0,05$ area.

If we were to move towards the downside I am looking towards 0,015$ level as its lowest point. This has been showing great support for a long time now. Preferably I want to see it hold the 0,0222$ level however because this has been the last low ever since created small higher lows this last week.

Quick update on Bitcoin

Bitcoin (BTC) managed to break through the 12K level yesterday which is obviously good news. Today however it is falling back below it and we have to keep an eye on it. Here is a chart on the weekly with the CCI and the OBV :

2cb9e7a09931a21a6d4a87f12ce31b72a6dbb9ebe0e2501775b20f3a49e066bd.png

OBV is looking absolutely fantastic. Creating higher and higher levels ! This is very important for the continuation of the trend. The CCI is this week (for now) pointing towards a curve downwards, which is a little bit less good news, but we are only on a Tuesday. The week is still long and if BTC can go towards the 13K level, the CCI will move further upwards as well. If we end the week under 12K, it could be seen as a form of rejection and could lead to more consolidation or even a move further downwards, but until then let us hope we can stay above 12K !

Conclusion

It looks very good these last couple of weeks. Bitcoin has been staying around the 11.5K/12K level. Zilliqa is once again approaching its main resistance around the 0,025$ level and there is a good chance it can break above it if BTC manages to close above 12K at the end of this week. OBV looks great on both cryptocurrencies and this is important for the long-term trend to the upside.
I am going to keep an eye on Zilliqa, because I believe it can break its all-time high of 0,235$ when it goes into DeFi and this will become in that case a 10X or more return !

This is not financial advise and I am not a financial advisor. Please do your own research and make your own decisions.

How do you rate this article?


34

2

Djordi
Djordi

I am Djordi van Kampen and I live in France. 2017 was the year I learned for the first time about cryptocurrencies and I am intrigued by what it can accomplish in this world, for the better of course !


DJCrypto
DJCrypto

Crypto enthusiast that would like to share his experience in the market in terms of investing and trading. Also travels a lot and likes photography and minerals.

Send a $0.01 microtip in crypto to the author, and earn yourself as you read!

20% to author / 80% to me.
We pay the tips from our rewards pool.