Zilliqa seems to have entered its bullish phase: $ZIL eyes 340 sats

04 Jun, 2019
by Lourens Pepler
Price Analysis
Zilliqa seems to have entered its bullish phase: $ZIL eyes 340 sats

On a day that Bitcoin and with it the whole cryptocurrency market is in red, Zilliqa seems to have entered its bullish phase. Is this just a false rally for $ZIL, that is trading 88% below its all-time high, or is this the first impulse wave for the Elliott Wave structure to follow?

Highlights:

- Down 88% from ATH

- 15min impulse phase complete

- Elliot Wave forming on the hourly

Starting it off with a 15min chart, we notice that $ZIL has completed an impulse wave by forming a mini 15min Elliott Wave structure. Since the impulse phase is over, we now wait for the ABC retracement to complete.

How we can tell that the impulse phase is over, is by plotting a Fib tool over the first mini impulse wave. If we measure from the high to the low we are able to see the future extensions for ZIL. As you can see we have hit the 261% extension almost exactly, after a 5 wave structure.

All the rules for Elliott Wave theory were followed with wave 2 not retracing 100% of wave 1, wave 3 is not shorter than wave 1 in length, wave 4 did not penetrate the top of wave 1, and lastly wave 5 ended at an important Fib line, the 261% extension (296sats)

ZIL/BTC chart provided by Tradingview

Since we have run out of impulse waves, we now have to see where ZIL will retrace to. Roughly plotting out a ABC correction gives us an idea of how this retracement will form. The only thing we really care about though is where C will end, and a good spot is always at the top of wave 1.

Zooming a bit out to the hourly chart now gives us a bigger picture. Assuming our smaller time frame Elliot Wave structure is complete, means that on a bigger time frame we should also be able to spot an Elliot form.  What we see now is that the first impulse wave has completed for $ZIL on the hourly chart. As we know we are able to measure impulse waves with a Fib tool, so lets plot it out.

Since we are interested in the retracement levels, we will measure the wave form the low to the high. Straight away we see that our interest point for C is lining up with the 61% retracement level, providing some confidence in our support zone.

ZIL/BTC chart provided by Tradingview

If ZIL manages to hold support at the 61% level, then we can expect ZIL to rise to a value of 340sats.

Do you think ZIL kicked off its bull run, or was this just a false rally after such a long bear market? Let us know what you think in the comments below! Also check our Bitcoin Price Analysis of today: ABC correction: 3 important Bitcoin levels to watch for in this drop

Disclaimer: Keep in mind this not investment or trading advice, just the opinion of our analysts. As always, do your own research, make your own decisions.

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