The price of Zilliqa fell below the psychologically important level, indicating that buyers lost the race. What does this have to do with it?
At the end of March, Zilliqa gained about 400%, going from $0.046 to $0.230. This tremendous rise lasted a week and allowed ZIL to set a one-year all-time high of $0.230. This upward spurt expectedly prompted many investors to lock in profits, which led to a reversal of the trend.
At the time of writing, Zilliqa is down about 60% to $0.095. More importantly, ZIL left the demand zone from $0.097 to $0.0121, which formed on March 28.
As ZIL fell 10% on April 26, that demand zone was canceled, turning the pattern into a bearish breakout. This technical formation foreshadows a repeat of the pullback. Thus, as the Zilliqa price tries to move higher, the risk of a correction will increase, which will be in the range of $0.097 to $0.050.
Thus, the price of Zilliqa can fall by about 45% if it retests the lower boundary at $0.097.
On the other hand, a daily candle close above $0.121 would invalidate the bearish trend. This move indicates that buyers will take control again, in which case ZIL could resume its 12% rise to $0.133.