The Zilliqa price has bounced back as sentiment in the cryptocurrency industry improves. ZIL has risen by more than 21% in the past 24 hours, bringing its total 7-day gains to more than 40%. Its total market value has jumped to more than $946 million, making it the 78th biggest digital coin in the world. It is sandwiched between OKB and Nexo.
ZIL rebounds
Zilliqa is a blockchain project that helps developers build decentralized applications. The platform was widely known as a leading Ethereum-killer because it was built from the ground up using the proof-of-stake consensus mechanism.
The network was also among the first ones to introduce sharding, which is a database splitting method that helps to improve the speed of a blockchain. It does this by ensuring that transactions are stored within their respective shards. Today, Zilliqa developers can build all types of projects like DeFi, games, and non-fungible tokens (NFTs).
Recently, however, Zilliqa has suffered as more developers have moved to competing networks like Ethereum, Solana, Polkadot, and Binance Chain. In fact, a quick look at DeFi shows that the industry is dominated by Ethereum, a network that is well-known for its slow speed and higher costs. It is hard to find any significant projects built on Zilliqa.
The Zilliqa price is rising today because of the overall comeback of other digital coins. In fact, a quick look at data compiled by CoinMarketCap shows that almost all cryptocurrencies like Cardano, Bitcoin, and Polkadot have risen in the past 24 hours.
This performance is driven by the overall price action of Bitcoin, which has gained by more than $10,000 in the past seven days. With its price approaching $40,000, there is a sense that it has already bottomed. Also, the price has rallied because of the relatively low bond yields and the fact that Amazon is said to be considering moving into the digital currencies space.
Zilliqa price prediction
The daily chart shows that the ZIL price has jumped in the past six consecutive days. The jump started when the price declined to the important support at $0.0505. Today, the price has moved to the 50-day moving average while the Relative Strength Index (RSI) has moved from the overbought level of 29 to the current 60. It also seems to be forming an inverted head and shoulders pattern.
Therefore, there is a possibility that the coin will bounce back to the resistance at $0.1167, which is about 40% above the current level. However, a drop below the support at $0.0505 will invalidate this prediction.
