Analyst predicts ZIL/USD could drop 40% to $0.011 after gaining over 900% between March 16 and June 11

The price of Zilliqa is correcting lower on the day as charts show oversold crypto may be due for more dips if the reversal continues.

The crypto market has seen some spectacular jumps since Black Thursday when coins crashed to new lows. Recently, DeFi coin Compound rose over 300% to see it break into the top 20 on CoinMarketCap. Before that, one of the best performing altcoins was Zilliqa.

Currently ranked 44th, the coin outshone Bitcoin’s 150% upside since March with a rally that saw its price climb over 900% over the same period. From lows of $0.003 on March 16, ZIL/USD shot to a high of $0.0289 on June 11.

ZIL/USD all-time price chart. Source: Coin360

ZIL/USD could drop to $0.12

Zilliqa’s price surge so far has happened despite struggles from Bitcoin, which has continually failed to consolidate above $10k. But like the benchmark cryptocurrency, the altcoin has over the past week failed to break resistance at a key price level. If BTC/USD fails to rally and drag the altcoin market with it, ZIL/USD could be in for a massive drop.

According to crypto trader Sparkster, Zilliqa’s weekly candle close has followed on the indecision of two weeks ago.

The decline from the highs of June 11 has been brutal compared to the sideways trading of many crypto assets. In the timeframe, the candle is turning deep red, the bearish scenario strengthened by a sloping RSI and a downturn in the MACD.

ZIL/USD price could drop by 40% if the downturn continues. Source: Sparkster on TradingView

The trader points to the ZIL/USD pair’s meteoric rise since March to be a potential top that could see the crypto tank to lows of $0.011. Finding support at this level means Zilliqa will have lost nearly 40% of its value from current prices.

If bulls fight the trend reversal on the back of altcoins making massive gains in the short term, the uptrend will rely on breaking resistance at the 23.6 and 38.2 Fibo. The bullish bias will be obliterated if there’s a continuation of the breakdown below support at $0.018.

The pullback could see ZIL/USD decline to the 61.8 Fibonacci retracement level at $0.014.

Currently, Zilliqa faces resistances at $0.020 and $0.022 on the uptrend while the materialising downtrend could rely on support at $0.018 and $0.015.

Zilliqa has dropped more than 5% on the day.