Zilliqa (ZIL) is approaching a key resistance zone, currently trading around $0.0050 on Thursday. If it faces rejection at this level, the price risks a deeper correction. The weakening of traders’ derivative positions further increases downward pressure on ZIL. At the same time, technical signals also warn of a potential next correction as momentum indicators turn negative.
Declining investor participation in Zilliqa
Zilliqa’s derivatives are showing signs of weakness, with open interest (OI) on Binance futures dropping to just $2.25 million on Thursday — the lowest since mid-December. This figure clearly reflects a retreat in investor engagement.
Zilliqa open interest chart on Binance | Source: Coinglass## Zilliqa Price Analysis: Bears Dominate Momentum
On Tuesday, Zilliqa’s price closed below the upward trendline drawn from multiple lows since December 19, signaling a change in market structure. As of Thursday, ZIL is approaching a critical breakout zone, coinciding with the daily resistance around $0.0051 and the 50% Fibonacci retracement level (from the low of $0.0042 to the high of $0.0061) at $0.0052, forming a key reversal zone.
Daily ZIL/USDT chart | Source: TradingView If ZIL cannot break above this resistance, the price may correct back down to the December 31 low around $0.0046. The daily RSI currently stands at 45, below the neutral 50, indicating increasing bearish momentum, while the MACD also recently signaled a bearish crossover on Tuesday, reinforcing the negative trend.
Conversely, if ZIL recovers and closes above the $0.0051 resistance, bullish momentum will be restored, paving the way for the price to move toward the 50-day EMA around $0.0054.
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