ZILLIQA ($ZILUSDT) 💹 | Zooming into Zil for the Double Kill?🏁On our last ZIL chart, we illustrated how ZIL was coming up to heavy resistance on higher time frames and only has a handful of key support ranges below.
What the bulls need to do to maintain momentum in the current uptrend is to find support ASAP and quickly head higher. Failing to do this isn't the end, it just really dampens the immediate bull case, which means fewer eyes on ZIL and buyers, which likely leads to more downside rather than the strength needed to break the resistance above.
Since this is true, and since our last ZIL chart was a broader high time frame overview, today we'll zoom in a bit to look at logical places for the bulls to find support.
Our analysis today is brought to you by user request, don't forget to ask questions and request charts in the comments below.
Support:
The pattern so far has been shallow pullbacks full of higher lows and clearly bullish price structure. This current correction is already looking a little bit more like a top due to a deeper pullback and the retest of the previous range (this is a first since the uptrend gained momentum).
With that in mind, the S1 bullish S/R flip and orderblock cluster is the most logical place to find support if the overall uptrend is to continue. We may have lost a little bit of bullish price structure, but a move up at S1 retains a structure of higher lows at least.
If S1 can't hold, then a retest of the S2 S/R flip also generally retains the overall bullish structure. Accumulation between S1 and S2 before moving higher, has some logic to it, especially on a higher time frame where we would be finding consolidation ontop of an important range from the first half of 2019 (see related ideas for our higher time frame ZIL chart).
At S3 things start looking grim for the bulls. Breaking below S2 means momentum is lost and clearly bullish market structure is too. It isn't like S3 or even S4 can't act as support and eventually result in a move higher, but it is likely that the excitement and the bullish narrative gets lost with a retest of these levels.
If we do end up going down below S3, we suggest looking to our longer-term ZIL outlook in the related ideas below.
Resistance:
In terms of local support and resistance, there is only one level to contend with, that is the R1 bearish S/R flip. If bulls can break above R1, we are likely going to run unless the broader market pulls back with enough intensity to stop alts from running.
Summary:
The bulls will want to S1 or S2 hold and then R1 broken quickly. The longer ZIL corrects, and the deeper it corrects, the more momentum is lost.
While there is a bit of good news like Binance staking to help hold up price, momentum and bullish structure is the main thing ZIL has going for it, so bulls want to focus on retaining that above all else.
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