Zilliqa: Gauging the true potential for profitably shorting ZIL

ambcrypto.com:

Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice.

The last three months have seen Zilliqa [ZIL] descend below some key price points while propelling a bearish flip on the EMA ribbons. 

The market structure recently saw buying resurgence in the $0.031-zone that helped ZIL find a close above the three-month trendline support (white, dashed). This rebound would likely face hurdles in the $0.042 and $0.05 range while the Fibonacci resistances stood sturdy.

At press time, ZIL was trading at $0.04002, down by 6.05% in the last 24 hours.

Source: TradingView, ZIL/USDT

Since matching its yearly highs in the $0.18-zone, ZIL has been on an aggressive downslide. The alt lost over 87% of its value from 1 April and plunged towards its 18-month low on 18 June.

After the EMA ribbon undertook a bearish flip, the 20 EMA (dark yellow) has been curbing most buying rallies. The sellers visibly exhibited their edge in the current market dynamics.

The recent rebound from the $0.03-level aided ZIL to flip the three-month trendline resistance to support. But the 38.2% Fibonacci level coincided with the EMA ribbons to create a robust barrier for buying rallies.

From a relatively conservative lens, a convincing reversal from the 38.2% level could lead ZIL into a tight phase in the $0.037-$0.042 range. Any potential close below the trendline support could lead to a retest of the $0.03 long-term support.

Any improvements in the broader sentiment could help ZIL invalidate the bearish tendencies and test the 61.8% level before possibly falling back into its bearish track.

Source: TradingView, ZIL/USDT

The RSI finally revived after exiting its low volatility position near the