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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