Hey friends, hope you are well and welcome to the new update on The Zilliqa (ZIL) coin.
Previous bullish BAT move and more than 60% pump:
Previously the price action of Zil formed a bullish BAT and turned bullish from the buying zone and hit the sell target as mentioned in the below chart. When the priceline started turning bullish on the 29th of May. This rally was more than 64%.
Different support and resistance levels:
After hitting this resistance of $0.50, the price action is moved down to the previous support of $.10. After $0.10, we have another support at $0.08 as well. You can call it minor support, however, it has been working as a resistance, and also as support as well. Therefore, we can expect that if the price line breaks down this $0.10 support level, then it can be stopped here at 0.08$ support, which is our next support after $0.10. Then we have the next support at $0.06. However, there are fewer expectations that it will be moved down to the $0.06. Maybe we will have a spike up to there but the price action can have a reversal move.
Broadening formation:
Previously we saw that the price action of Zilliqa with the bitcoin pair is moving in the broadening formation and forming the higher highs, whenever the price action is getting reversed from the support.
But this time, The new higher high is still due. We can observe that the price action has moved down at this support when we had the formation of the bullish bat pattern on the 2d chart (it will be discussed later in the article). On the weekly time frame chart, it was moved at this support of the broadening formation. But after turning bullish, the price action did not form the next higher than the previous high and moved down. Therefore, this time, if the price action will be reversed bullish from the support, then we can expect that the price action can form higher than the previous high. We still have the 50 SMA and the 100 SMA additional supports below the support line of this broadening formation on the weekly time frame chart.
The 50 SMA and 100 SMA are considered very strong supports on a weekly time frame. However, the price action can use this 50 SMA support as it is using it previously as well.
Bullish Cypher pattern:
Now on the daily time frame chart, the price action of ZILLIQA has formed a bullish Cypher pattern.
Buy and sell targets:
Buy between: $0.1019 to $0.0875
Sell between: $0.1132 to 0.1404
Stop loss:
The maximum extent of the potential reversal zone $0.0875 can be used as a stop loss.
Possible profit and loss ratio:
As per the above targets, this trade has a big profit possibility of 60%, and the loss possibility is 14.5%.
Conclusion:
Even though the harmonic bullish reversal patterns are perfectly formed, but we need to take care of the stop loss strictly. Because in the short-term the market is still bearish. Once the price action of Zilliqa will be turned bullish from the potential reversal zone then it can lead the price action to achieve higher than the previous high price level.
Note: Above idea is for educational purposes only. It is advised to diversify and strictly follow the stop loss, and don't get stuck with trade.
For more harmonic trading ideas you can join:
https://www.patreon.com/moon333
Link for Binance exchange, the best place to buy or sell Crypto:
https://www.binance.com/?ref=11256882
▶️ 3Speak