#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.
