Zilliqa (ZIL) has weakened more than 30% since November 06, falling from $0.033 to a low of $0.019. The current price of Zilliqa (ZIL) stands at $0.022, which is more than 90% off from its 2022 highs that were registered in April. Today, Crypto Lists will discuss Zilliqa (ZIL) price estimates from a technical and fundamental analysis perspective.
The bankruptcy of the FTX crypto giant caused a massive sell-off on the cryptocurrency market, and according to analysts, this underperformance of all crypto assets is here to stay until the bulk of uncertainty has cleared up.
Please note that there are also many other factors to consider when entering a position, such as your time horizon, willingness to risk and how much margin you have if trading with leverage.
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Everything goes much quicker on Zilliqa
Zilliqa is a software that seeks to incentivize a global, distributed network of computers to run a blockchain platform that aims to increase user scalability through sharding. Zilliqa is built entirely on a sharded architecture that splits the network into several pieces, or shards, allowing nodes to only process a fraction of the network’s transactions.
Zilliqa differs from Bitcoin because everything goes much quicker on this network, and it is important to mention that Zilliqa offers developers to use its proprietary language, Scilla. In this way, developers can run custom programming logic (smart contracts) and design new programs (decentralized applications) to offer a variety of products and services.
ZIL is a native token for the Zilliqa blockchain built to enable and scale decentralized apps, from financial services to NFT marketplaces. By owning ZIL, users can engage with every dApp and platform service built on the Zilliqa blockchain, and they also have the ability to vote on network upgrades.
Zilliqa (ZIL) has weakened more than 30%, and the risk of further decline for ZIL is not over. The outcome of the recent negative events raised more doubts in the crypto space, and as a result, cryptocurrency investors continue to offload their assets from the exchanges.
The Fed matters
At the same time, the U.S. economy faces a recession risk that could dent crypto market sentiment even more, and the main question still remains how much time Fed will need to hold policy at restrictive levels. The federal funds rate is now in a range of 3.75% to 4% (the highest level since January 2008), and there’s a general expectation of a contraction in the economy in the next several months, and it’s going to have an impact on corporate earnings.
Analysts expect that there is a big chance that the U.S. central bank will raise rates by 50 basis points at its policy meeting next week, with rates expected to peak at 4.98% in May 2023. Investors continue to stay away from riskier assets, and going forward, the market is going to be hypersensitive to any sort of Fed comments. The cryptocurrency market is still heavily correlated to equities and vulnerable to macro market shifts, while multiple data also points hint that Bitcoin might still not reach the bottom. The host of CNBC’s Mad Money show, Jim Cramer, said this week that cryptocurrency investors still have time to sell their “awful” positions.
Most digital currencies have lost a significant chunk of their valuation, with Bitcoin being down nearly 65% since the beginning of 2022. There’s still a whole industry of crypto boosters trying desperately to keep all of these things up in the air — not too different from what happened with bad stocks during the dotcom collapse.
– Jim Cramer, CNBC
The upside potential for the price of Zilliqa (ZIL) probably remains limited, and traders should keep Bitcoin on their watchlist while placing a short position toward the area.
Technical analysis for Zilliqa (ZIL)
Zilliqa (ZIL) has weakened from $0.033 to $0.019 since November 06, 2022, and the current price stands at $0.022. Zilliqa (ZIL) might have a hard time holding above the $0.020 level in the upcoming days, and a break below this level would indicate that ZIL could probably test the price level at $0.018.
On the chart below, I marked the trendline, and as long the price of Zilliqa (ZIL) is below this trendline, we can’t talk about a trend reversal, and the price of ZIL remains in the SELL-ZONE.
Important support & resistance levels for Zilliqa (ZIL)
On this chart (the period from July 2022), I marked important support and resistance levels that can help traders to understand where the price could move. Zilliqa (ZIL) remains under pressure, but if the price advances above the resistance that stands at $0.030, the next target could be $0.035. The current support level is $0.020, and if the price breaks this level, it would be a “SELL” signal, and we have the open way to $0.018. If the price drops below $0.015, which represents an important psychological support level, the next target could be located around $0.010.
What speaks for the rise in the Zilliqa (ZIL) price
The upside potential for ZIL remains limited for now; still, if the price advances above $0.030, the next target could be $0.035 or even resistance that stands at $0.040.
It is also important to note that any news that gives hope that the Fed is becoming less hawkish is viewed as a positive for cryptocurrencies, and ZIL could advance from the current price level if the Federal Reserve hints at slowing the pace of rate increases at its meeting on December 13.
What indicates further downfall for Zilliqa (ZIL)
Zilliqa (ZIL) has weakened more than 30% since November 06, and despite this, market participants should be ready for another potential downward move. The bankruptcy of the FTX crypto giant continues to worry investors, and as a result, cryptocurrency investors continue to offload their assets from the exchanges. The current support level for ZIL stands at $0.020; if the price breaks this level, the next target could be $0.018 or even below.
What do analysts and experts say
Fundamentals of Zilliqa (ZIL) are strongly tied to the overall cryptocurrency market, which keeps it prone to undergoing additional downtrends. The consensus appears that the price of ZIL could drop even lower before reaching the bottom of the ongoing bear market. The outcome of the recent events has raised more doubts in the crypto space while Peter Schiff, CEO and chief global strategist at Euro Pacific Capital, continued urging people to get out while they could. Salah-Eddine Bouhmidi, head of markets at I.G. Europe, believes that the price of Bitcoin is on track to plunge to $13,500 by the end of the year, and if this happens, ZIL could be at lower price levels.
Disclaimer: Crypto is extremely volatile and not suitable for everyone to invest in. Never speculate with money that you cannot afford to lose. The information on this site is presented for educational purposes only and should not be construed as investment or financial advice.