Zilliqa / USD Technical Analysis: Falling Deeper
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- Zilliqa is heavily bearish in the short-term and is under immediate selling pressure
- Bearish divergence is seen over the four-hour time frame
- Medium-term technical outlook for the ZIL / USD is bearish, with technical indicators pointing lower
ZIL / USD Short-term price analysis
Zilliqa is heavily bearish in the short-term and risks further losses towards its all-time trading low. Bearish price divergence is also evident on the MACD indicator across the four-hour time frame. The bearish price divergence was created during the start of the pair’s mid-December 2018 rally.
It appears that a head and shoulders pattern may be forming across the lower time frames. The neckline of the bearish pattern is found at the December 28th low.
Technical indicators across the lower time frames are signaling that further losses are likely for the ZIL / USD pair in the short-term.
Pattern Watch
The head and shoulders pattern across the lower time frame charts is the most dominant theme in the short-term. If price declines below the December 28th trading low, a much larger head and shoulders may be in the process of forming.
ZIL / USD H4 Chart (Source: TradingView)
MACD Indicator
The MACD histogram is starting to trend lower on the mentioned time frame, while a bearish crossover has occurred on the MACD signal line.
Stochastic Indicator
The stochastic indicator is bearish and has moved into extremely oversold condition.
ZIL / USD Medium-term price analysis
Zilliqa is heavily bearish and likely to experience further losses over the medium-term horizon. The ZIL / USD pair has recently performed a downside technical breakout from a triangle pattern on the daily time frame.
Technical indicators on the daily time frame are turning lower and highlight that bearish momentum is gathering pace over the medium-term.
A further technical break below the December 28th trading low would likely signal a more aggressive move lower towards the pair’s all-time trading low.
Pattern Watch
Daily price closes outside of the triangle pattern should be watched closely, as they will provide a good indication of the ZIL / USD pair’s likely path over the medium-term.
ZIL / USD Daily Chart (Source: TradingView)
MACD Indicator
The MACD histogram is trending lower on the daily time frame, while a bearish line crossover has occurred.
RSI Indicator
The Relative Strength Index is bearish and is signaling overall weakness in the ZIL/USD pair over the medium-term.
Conclusion
Zillaqa is bearish in the short and medium-term and is likely to fall towards the December 28th trading low in the near-term.
Traders should carefully watch for the formation of a larger head and shoulders pattern and extended losses below the neckline of the failed inverted head and shoulders pattern on the four-hour time frame.
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