Market Activity Overview
Zilliqa (ZILUSD) experienced fluctuations in its trading patterns, initially testing the crucial support level at $0.01081 before staging a rebound. Although momentum weakened during the mid-session, a late rally helped the cryptocurrency close stronger. Overall, volatility remained subdued, with price movements confined to tight ranges throughout the trading day.
Trading Volume Insights
Late in the trading session, turnover saw a significant uptick, particularly during the afternoon and early evening hours. A bullish engulfing pattern became evident after 19:30 ET, indicating a surge in buying interest among traders. On September 1, 2025, ZILUSD commenced trading at $0.01115, hitting a peak of $0.01125 and a low of $0.01081, before ultimately closing at $0.01116 on September 2, 2025. Total trading volume reached 185,449.5 units, contributing to a notional turnover of approximately $2,077.65 over the preceding 24 hours.
Price Structure and Patterns
During the afternoon session, ZILUSD encountered a bearish breakdown, dipping below the $0.01105–$0.01110 range, which had previously functioned as a consolidation zone. However, a notable rebound occurred from the daily low of $0.01081, characterized by a bullish engulfing candle around the $0.01118–$0.01116 range, signaling a resurgence in buying momentum. A doji formation near the close at $0.01116 indicates a momentary pause in market activity, suggesting a balance between buyers and sellers.
Moving Averages Analysis
On the 15-minute chart, the 20-period Exponential Moving Average (EMA) and the 50-period EMA maintained close proximity throughout the day, both residing around the $0.01115–$0.01120 range. This alignment implies a neutral to slightly bullish outlook. The late rally pushed the price above the 20-EMA, hinting at a potential short-term reversal. In contrast, the daily chart shows the 50, 100, and 200 EMA lines relatively flat, with the 50-EMA positioned just below the 100-EMA, indicating a lack of strong directional bias.
MACD and RSI Indicators
The MACD line dipped below the signal line during the mid-day trading session, pointing towards bearish momentum. However, a subsequent crossover above the zero line in the early evening confirmed a possible short-term reversal. The Relative Strength Index (RSI) fell to approximately 30 during the afternoon downturn but rebounded to around 47 by the close, suggesting that the asset was oversold but experienced a corrective rally. The RSI remains neutral, with no definitive signs of being overbought or oversold throughout the day.
Bollinger Bands Analysis
Throughout most of the day, volatility remained low, with the price confined within a narrow range of the Bollinger Bands. The consolidation phase tightened between $0.01105 and $0.01115, leading to a late-session expansion that saw the price close near the upper band at $0.01116. This could indicate a potential breakout or continuation, although the tight band signifies a lack of strong conviction in either direction.
Volume and Turnover Dynamics
Trading volume was relatively low until the afternoon when a notable spike occurred, especially between 19:30 and 21:00 ET, coinciding with a dramatic sell-off followed by a rebound. The largest turnover was recorded during the 19:30 ET candle, with 58,531.1 units traded. However, volume sharply declined after 21:00 ET, suggesting that the rally may not have garnered widespread trader participation. The divergence between price and volume after this point could imply a temporary bounce rather than a solid reversal.
Fibonacci Retracement Levels
Applying Fibonacci retracement levels to the swing from $0.01081 to $0.01125, key support and resistance levels emerged at the 38.2% level (~$0.01109) and the 61.8% level (~$0.01119). The price briefly touched the 61.8% retracement at $0.01119, indicating a potential resistance point for the rebound. The 38.2% level was tested twice; the first attempt faltered, but the second held, suggesting a possible short-term pivot. On the daily chart, the 61.8% retracement of the longer-term downtrend remains around $0.01130, representing a significant psychological barrier to monitor.
Backtest Strategy Considerations
The recent price movements align with a potential breakout strategy that involves entering positions when the price closes above the upper limit of the 15-minute Bollinger Band, with a stop-loss set below the 61.8% Fibonacci retracement level. A backtest of this strategy over the past 30 days would likely yield mixed outcomes due to the asset’s low volatility and narrow consolidation periods. A refinement of this strategy could involve incorporating an RSI divergence filter, allowing for long positions only after confirming a bullish RSI divergence and volume support. This method could help minimize false breakouts and enhance risk-adjusted returns.
