During a beef market, negative news is quickly absorbed, and safety damage is often limited. So while XRP’s price has fallen dramatically due to uncertainty about the outcome of the US Securities and Exchange Commission lawsuit, other alternative currencies have not been significantly affected.
Also, when the strong rally in Bitcoin (BTC) took a breather, several altcoins broke through the upper resistance levels and are trying to resume the trend. Let’s look at a few symbols that have risen sharply in recent days and analyze their maps to determine if the rally can continue.
ZIL / US Dollars
The Zilliqa (ZIL) sign has risen in 2020. Part of the growth can be attributed to the decentralized economic boom that dominated most of the year.
Following the ZilSwap decentralized exchange launched on 5 October and non-hedging quotas on 14 October, the symbol has skyrocketed. These new features allowed the community to participate directly in the smart contract, even though they previously had to do so through a third-party intermediary.
So far, the community has stuck around 30.49% of the total bid, and the low qualification limit of 10 ZIL has probably attracted more participation from token holders.
During the coronavirus pandemic, most people stayed home and spent time on social media. Therefore, the launch time for SocialPay Zilliqa is the best possible. Launched in May, the platform rewards users for sharing Zilliqa updates and announcements on Twitter.
All of these fundamental developments could lead to an increase in the number of wallet addresses and monthly transactions in 2020. But can the token continue to perform better in 2021? Let’s examine the graphs to find out.
The alternative currency had a strong upward trend, rising from a low intraday of $ 0.0296388 on December 12 to the highest intraday of $ 0.0996 on December 27, representing a 236% increase in about two weeks. Generally, these vertical overloads are not sustainable in the long run. Periodic corrections or consolidations are necessary, which can weaken the bullish movement and prolong the duration of the trend.
The ZIL / USD pair formed subsequent daily candlestick patterns on December 28 and today. This indicates a reduction in volatility as bulls and bears decide which move will be the next trend.
If the inner day becomes bullish, the bullish trend may continue. Conversely, if an inner daylight follows a sharp downward trend, the bears may gain the upper hand, and a deeper correction is expected.
Therefore, if the price falls below the 38.2% Fibonacci retracement level of $ 0.0728748, then it can fall to the 50% retracement level of $ 0.0646194, and then to the 20-day exponential moving average ($ 0.0570) .
A strong rebound from this support indicates that positive sentiment remains in place as traders accumulate in downturns. The bulls will then try to resume the trend, and if they manage to push the price above $ 0.0996, a rally to $ 0.14 is possible.
On the other hand, if the price falls below the 20-day moving average, it will mean that a short-term peak may be in place as bulls are reluctant to buy in downturns.
Moon / dollar
Terra Protocol’s Luna code seems to have benefited from wider adoption of existing products and proposed launches of new products. In November, the Chai Payments app had over 2.8 million transactions, with payments of over $ 90 million.
To capitalize on strong demand for US stocks, commodities and ETFs, Terra Mirror launched the Protocol on December 4, which allowed the creation and trading of synthetic assets. This may continue to attract traders as long as assets remain in a strong trend.
Terra also tries to appeal to the grocery reference category, which mainly benefits direct referrers. Protocol plans to officially launch BuzLink marketing tools in February 2021, which will reward the entire referral chain when sales are complete.
Luna rose from a low intraday of $ 0.45 on December 24 to a daily high of $ 0.70 today, a gain of 55% during the week. Bullish moving average and relative strength index (RSI) near overbought territory indicate that the bulls have an edge.