Zilliqa (ZIL) The price continues to show signs of recovery from losses as it approaches a stable support area. The pullback occurred after the Bitcoin price fell below an important support to gather liquidity. This pullback in ZIL may encourage buyers to join the market.
Is Zilliqa Ready for a New Rise?
Zilliqa price, increased 385% in less than two weeks from March 24. This exponential rally was completed with a rally to $0.23 and met with investors booking profits on April 1, resulting in a 47% collapse.
The pullback has forced the altcoin to retest the daily demand zone, which ranges from $0.097 to $0.121. The field in question is usually where unfilled purchase orders are located. Therefore, a return to this region could trigger another buying spree.
Investors, ZIL priceThey can wait for the coin to start a rally at $0.23. Barriers are expected on this rise as the bulls need to break the $0.152 resistance barrier to reach the March 30 high. Breaking this resistance on Zilliqa will trigger a move towards the $0.256 top. If this scenario happens, the rally will yield a 110% gain.
The factor that could strengthen this bullish trend for the price of Zilliqa is that on-chain volume has stabilized at around 1.44 billion recently. At its peak, volume was around 9.65 billion and has since dropped 85%. Regardless, the sentiment is bolstering the bounce as volume has soared from 1.44 billion to 2.22 billion in the last 48 hours.
This development is also compatible with technical analysis and is proof that investors are returning to the network. While this setup is on the rise, it also appears that the social volume is depleted.
The index fell from 161 to 14, marking a 91% decline. The sudden decrease in social presence among investors suggests that returning investors may be institutional rather than retail.
Still, it’s important for investors to wait for the Bitcoin price to stabilize to see some bullishness for the Zilliqa price. Also, the upcoming FOMC meeting on March 7 could be the key to reinvigorating a rally for major crypto and thus altcoins including ZIL.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.