Disclaimer: I am not a financial advisor and the following article is for educational purposes only. Trading and investing is high risk/reward profession and you should not Trade/invest money that you are not willing to lose.
Introduction to Zilliqa Blockchain:
Imagine a bustling digital world where people can exchange value, create applications, and build trust without relying on intermediaries like banks or governments. This is where Zilliqa comes into play, bringing its unique approach to revolutionize the blockchain space.
Zilliqa is not your average blockchain; it’s a next-generation platform designed to overcome the limitations faced by earlier blockchain networks. What sets Zilliqa apart is its innovative sharding technology, which allows it to process transactions in parallel, leading to significantly higher scalability and throughput. Moreover, Zilliqa is designed to be developer-friendly, providing tools, libraries, and smart contract languages that simplify the process of creating and deploying applications on its platform. With its emphasis on user experience, Zilliqa aims to attract a wide range of developers and foster a vibrant community of innovation.
In summary, Zilliqa stands out as a high-performance blockchain platform that tackles the scalability challenge head-on through sharding technology. By doing so, it offers a faster, more scalable, and developer-friendly environment for building decentralized applications. With its unique approach and ambitious vision, Zilliqa paves the way for a future where blockchain can truly unleash its transformative potential in various industries.
Technical analysis
Monthly time frame
The monthly analysis indicates that there is a major support range between $0.002227 and $0.005917, while the range between $0.026950 and $0.036907 represents a significant resistance level. It is noteworthy that the swing low created in March 2023 has recently been breached, suggesting a bearish market sentiment. Consequently, the market appears to be targeting liquidity below the $0.0160 level. Although there is an opportunity to adopt a bearish stance, the risk-to-reward ratio may not be favorable.
To explore potential opportunities, let us shift our focus to the weekly timeframe and analyze the price action within that period.
Weekly time frame
Examining the weekly timeframe, we identify a resistance range between $0.024458 and $0.036907. The chart also reveals a bearish development in the market. During March 2020, the market found support at “weekly support A” (as marked in the chart), but failed to break the subsequent swing high and subsequently declined, breaking the swing low established in March 2023. Two weeks ago, the market retested the weekly resistance level at $0.024458 and broke downwards.
Considering this scenario, there is a potential opportunity for a short position. However, once again, the risk-to-reward ratio may not be favorable. To explore further possibilities, let us shift our attention to the daily timeframe and assess the price action within that period.
Daily time frame
Analyzing the daily timeframe, a clear pattern of equal highs can be observed, marked by the slope of the red line. This suggests that there is a high probability that the market may soon target the liquidity above these highs, providing an opportunity for a short position. If the market reaches the level of $0.02900, it would be an optimal entry point for a short position, with a stop loss placed above the previous swing high. The target profit could be set at the lows around $0.018239.
In conclusion, taking a long position during this period carries a high level of risk. On the other hand, adopting a bearish stance presents a lower-risk opportunity. However, it is crucial to exercise patience and wait for the market to offer a better risk-to-reward scenario before entering a trade.
Thank you for reading my article. If you liked my article and would like to support my work, Please treat yourself with something awesome from my Etsy Shop.
