Zilliqa Bullish Divergence Signals Potential Trend Reversal

Zilliqa's two-year bullish divergence on the weekly chart signals weakening bearish momentum, suggesting a potential reversal could occur soon.

A sustained price consolidation above the $0.0117 trendline supports the bullish reversal thesis, with the market awaiting a breakout or rejection.

Technical indicators like the Stochastic RSI and On-Balance Volume show signs of growing bullish momentum, increasing the likelihood of upward price action.

Zilliqa (ZIL) continues to exhibit a bullish divergence on its weekly chart, a setup that has now lasted over two years. This persistent structure suggests the asset may be nearing a major breakout.#

Multi-Year Pattern Signals Potential Bullish Reversal

Zilliqa continues to form lower lows on its price chart while its oscillator indicators show higher lows over the same period. This setup indicates a classic bullish divergence, pointing to weakening downward momentum. The divergence is playing out on the weekly timeframe, lending added weight to its potential outcome.

According to analysis shared by JavonTM1, the long-term support trendline remains intact despite repeated tests. The chart shows consistent price rejections at a descending resistance that has capped gains since 2021. With ZIL consolidating just above this resistance, it sets the stage for either a breakout or another pullback.

Bullish Divergence Builds Confidence for Zilliqa

The presence of bullish divergence on the Zilliqa chart has drawn attention as the market searches for direction. The recent price drop of 2.84% over 24 hours, and 10.93% over seven days trading at 0.1161, has not invalidated the setup. Instead, the price continues to hold near the resistance trendline at around $0.0115.

If the trendline is breached with sustained buying, it could prompt a strong upward move. However, failure to reclaim this level may open the path to lower support zones. This juncture is critical for determining ZIL’s next macro direction.

Indicators Suggest Momentum Shift

Zilliqa’s On-Balance Volume stands at 104.68 billion, showing long-term accumulation despite the absence of explosive volume activity. This suggests a quiet buildup of buying pressure without major spikes.

The Stochastic RSI currently supports the bullish case. The %K and %D lines are trending upward after crossing out of oversold levels. This technical momentum shift, along with the price testing key resistance, strengthens the probability of a possible breakout move in the short term.

The post Zilliqa Bullish Divergence Signals Potential Trend Reversal appears on Crypto Front News. Visit our website to read more interesting articles about cryptocurrency, blockchain technology, and digital assets.