zilliqa

#zilliqa ($ZIL ) is currently facing increased selling pressure after failing to sustain its recent upward trajectory. Following a breach of its primary ascending trendline, the asset is retesting critical resistance levels. Technical indicators and derivatives data both suggest a heightened risk of a significant price correction.
Technical Analysis & Key Levels
The market structure for ZIL shifted bearishly on Tuesday when the price closed below the ascending trendline established in mid-December. Currently trading near $0.0050, the asset is encountering a "confluence of resistance" between $0.0051 and $0.0052. This zone is reinforced by:
The previous trendline breakout point.
The 50% Fibonacci retracement level ($0.0052).
Failure to reclaim these levels could see ZIL descend toward the year-end support of $0.0046. Conversely, a daily close above $0.0051 would invalidate the immediate bearish thesis, potentially clearing a path toward the 50-day EMA at $0.0054.
On-Chain & Derivatives Insights
Investor conviction appears to be waning. Data from Binance indicates that ZIL's Open Interest (OI) has collapsed to $2.25 million—its lowest point since mid-December. This decline in participation suggests that capital is exiting the ecosystem, often a precursor to extended bearish price action.
Momentum Indicators
Relative Strength Index (RSI): Currently at 45, the RSI is trending below the neutral 50-mark, confirming that bears have seized control of the short-term momentum.
MACD: A bearish crossover was confirmed on Tuesday, providing further technical justification for a cautious outlook.

#dyor

Zilliqa (ZIL) is approaching a critical resistance zone, trading around $0.0050 on Thursday. This level aligns with a key daily resistance and the 50% Fibonacci retracement (measured from the $0.0042 low to the $0.0061 high), forming a decisive area that could determine ZIL’s next major move.
If price faces rejection here, ZIL risks entering a deeper corrective phase, especially as derivatives data and momentum indicators continue to deteriorate.
Declining Derivatives Participation Signals Caution
Zilliqa’s futures market is showing clear signs of weakening sentiment. Open Interest (OI) on Binance futures has dropped to approximately $2.25 million, marking its lowest level since mid-December. This decline highlights reduced trader participation and suggests fading speculative interest — a condition that often precedes heightened volatility or downside continuation.
Lower OI during a price rebound typically implies that the move lacks conviction, increasing the probability of rejection near resistance.
Technical Outlook: Bears Hold Momentum Advantage
On Tuesday, ZIL closed below an ascending trendline drawn from multiple higher lows since December 19, signaling a shift in market structure. As of Thursday, price is testing a confluence zone between $0.0051–$0.0052, where daily resistance meets Fibonacci retracement levels.
Momentum indicators support a cautious outlook:
RSI (Daily): 45, below the neutral 50 level, indicating growing bearish momentum
MACD: Bearish crossover confirmed earlier this week, reinforcing downside risk
If ZIL fails to reclaim the $0.0051 resistance with a strong daily close, price could revisit the December 31 low near $0.0046, with further downside toward the $0.0043–$0.0042 demand zone.
Bullish Scenario Still Possible — But Conditional
On the flip side, if ZIL manages to close decisively above $0.0051, bullish momentum could recover. Such a breakout would open the path toward the 50-day EMA near $0.0054, potentially shifting short-term bias back in favor of buyers.
Trading Scenarios (For Discussion Only)
Bearish Setup (Rejection Play):
Sell zone: $0.0052
Stop-loss: Above $0.0055
Targets:
TP1: $0.0046
TP2: $0.0043
TP3: $0.0042
Bullish Setup (Confirmation Play):
Buy on confirmation: Daily close above $0.0051
Stop-loss: Below $0.0048
Targets:
TP1: $0.0054 (50 EMA)
TP2: $0.0058
TP3: $0.0061
Market direction remains highly sensitive to Bitcoin’s behavior, which continues to dictate broader altcoin momentum.
This article is for informational and educational purposes only and does not constitute investment advice. Always conduct your own research and risk assessment before making any trading decisions.
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