The Zilliqa price is in its fifth day of straight gains as investors remain optimistic about the altcoin. ZIl is trading at $0.1395, which is close to its highest level since May 19 and 97% above the lowest level on May 21. It has a market capitalization of more than $1.6 billion and is the 63rd biggest cryptocurrency in the world. It sits between SushiSwap and Holo.
Zilliqa rebounds
Zilliqa is a blockchain project that has a relatively similar role to other platforms like Ethereum, Solana, Binance Chain, and Crypto.org. Its goal is to create a platform that other developers can build decentralized applications (Dapps) like those in DeFi and Non-Fungible Tokens (NFT).
Zilliqa differentiates itself from other platforms because it was among the first one to embrace the concept of sharding. This is a process that splits infrastructure into several blockchains to improve on scalability. Scalability refers to the number of transactions that a network can handle per second.
Zilliqa also uses the Practical Byzantine Fault Tolerance governance and the Scilla programing language to run smart contracts.
ZIL is the native token for the Zilliqa ecosystem. It is similar to Ether for the Ethereum blockchain and BNB for the Binance chain.
Like all cryptocurrencies, the Zilliqa price dipped in May as worries about high interest rates and regulation in China rose. On May 21, the cryptocurrency was down by more than 70% from its highest point. So, what next for Zilliqa price?
Zilliqa price prediction
In my previous Zilliqa price prediction, I noted that the currency was extremely bullish above $0.1345. Turning to the daily chart, we see that the Zilliqa price formed a double-top pattern at $0.2533 in May. Its neckline was at $0.1178. In technical analysis, this pattern is usually a bearish signal.
Today, the ZIL price has already moved above this neckline and the 25-day and 15-day weighted moving averages. This is also another positive factor for the coin. It has also moved above the neckline of the inverted head and shoulders pattern that has been forming.
Therefore, in my view, the price will likely keep rising as bulls target the next key resistance at the 23.6% retracement level at $0.1972, which is about 42% above the current level. To achieve this, bulls will need to move above the 38.2% retracement at $0.16255.
However, another drop below the 50% retracement at $0.1345 will invalidate the bullish thesis.
