While the altcoin market continues to move sideways on September 22, ZIL and ARB prices are outperforming. This momentum is built on massive whale acquisitions and a number of technical advances.
While the altcoin market is falling, Zilliqa (ZIL) is rising independently of its competitors
ZIL price has traded above the $0.0165 area since the beginning of the year. It jumped into the area several times during this time. But each bounce led to the formation of a lower high, which was considered a sign of weakness. The altcoin managed to break $0.0165 at one point last week.
However, it formed a long lower wick (green icon) and retook the field immediately thereafter. Now the price is in the process of breaking out from the descending resistance line. Such divergences and recoveries are bullish signals and often lead to trend reversals. In any case, ZIL needs to close above the descending resistance line to confirm a reversal of the uptrend.
Despite this bullish price action, the RSI still remains uncertain. While the indicator is rising, it is still below 50. An RSI move above 50 combined with a close above the descending resistance line will confirm that the trend is bullish.
Why is ZIL rising?
Technical analysis on the daily time frame supports that the rise continues. There are two main reasons for this. First, the altcoin price formed a double bottom, which is considered a bullish formation. The double bottom catalyzed the rise that led to the recovery of the $0.0165 horizontal support area.
Secondly, the double bottom combined with a bullish divergence in the RSI (green line). This is a bullish situation when the price decline is combined with the momentum increase. It usually leads to a reversal of the upward trend. In the case of ZIL, it caused a break of the short-term descending resistance line. If the rise continues, the next closest resistance area will be $0.0200, a 13% increase from the current price.
However, according to technical analyst Valdrin Tahiri, despite this bullish ZIL price prediction, failure to sustain the increase could lead to a break down of the resistance line currently located at $0.0160. This will mean a 10% decrease from the current price.
ARB price is rising, but altcoin investors need to be careful at these levels
ARB price rose around 3.5% today, taking one step ahead of its competitors. The altcoin has also proven to be a resilient cryptocurrency amid DeFi turbulence in 2023. Data from Lookonchain shows that this is largely due to the actions of whales and ARB supporters.
This whale lost money on $ARB but seems still very bullish on $ARB, withdrawing 1.15M $ARB ($952K) again from #Binance in the past 2 days.
The whale was long $ARB on #Aave on July 23, and as the price of $ARB decreased, he had to sell $ARB at a loss to pay off debt on Sept 11. pic.twitter.com/LYvFW6e1Y7
— Lookonchain (@lookonchain) September 22, 2023
According to Lookonchain’s report, a prominent whale has given ARB a huge vote of confidence. This whale has withdrawn 1.15 million ARB worth approximately $952,000 from the Binance exchange in the last 48 hours. The last seven days have been successful for the altcoin, as CoinMarketCap notes that ARB has seen price growth increase by more than 3% during this time. However, the price of ARB fell by 0.48% in the last 24 hours, trading at $0.8345. This was likely due to the fluctuation in market activity of altcoin whales over the past few days.
Finally, technical indicators show that ARB may see its price decline in the coming days. This happened after the altcoin failed to break out of the medium-term descending price channel over the last 72 hours and the ARB price fell below the 9-day EMA line, where it continues to be traded at the time of writing. As Kriptokoin.com reported, the ARB price survived an important token unlock event this week.
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