Trade Recommendation: Zilliqa

Zilliqa

Zilliqa (ZIL/BTC) has been in a downtrend for over a year now. Its own crypto winter has driven the coin to lows of 0.00000203 on May 14, 2019. That’s a plunge of over 91% from the all-time high of 0.00002508 on May 10, 2018.

Nevertheless, we are seeing signs that Zilliqa has carved a short-term bottom at the very least. This is the primary reason why we’re covering this cryptocurrency today.

Technical analysis shows that ZIL/BTC has painted a double bottom pattern on the shorter time frame when it took out resistance of 0.0000026 on May 21st. The breakout drove the market to as high as 0.0000033 on June 7th.

In addition, the breakout pushed the market above the diagonal resistance. More importantly, recent price action shows that Zilliqa converted this former resistance into support.

Speaking of flipping a previous resistance into support, Zilliqa was able to repeat this feat on a former horizontal resistance. On June 15th, bears tried to push the market down support of 0.0000026 but bulls fought back and reclaimed the support the next day with force. This is a signal that the market is targeting higher prices.

The strategy is to buy as close to 0.0000026 as possible. As long as Zilliqa trades above this level, bulls will likely gather the momentum to climb to our targets 0.00000322 and 0.0000042.

The process may take less than a month.

Daily Chart of Zilliqa/Bitcoin on Binance

Zilliqa crypto chart
As of this writing, the Zilliqa/Bitcoin pair is trading at 0.00000275 on Binance.

Summary of Strategy

Buy: As close to 0.0000026 as possible.
Targets: 0.00000322 and 0.0000042.
Stop: 0.00000248

 

Disclaimer: The writer owns bitcoin, Ethereum, and other cryptocurrencies. He holds investment positions in the coins but does not engage in short-term or day-trading.
Featured image courtesy of Shutterstock.

Kiril is a CFA Charterholder and financial professional with 5+ years of experience in financial writing, analysis and product ownership. He has passed all three CFA exams on first attempt and has a bachelor's degree with a specialty in finance. Kiril’s current focus is on cryptocurrencies and funds, as he does his own crypto research and is a Product Manager at Mitre Media. He also has his personal website, InvestorAcademy.org where he teaches people about the basics of investing. His ultimate goal is to help people with limited knowledge of finance and investments to create investment portfolios easily, and in line with their unique circumstances.