Zilliqa (ZIL) has weakened more than 30% since April 23, 2023 falling from $0.036 to a low of $0.022. The current price of Zilliqa (ZIL) stands at $0.024, which is more than 80% off from its 2022 highs that were registered last year in April.
But where is the price of Zilliqa going next, and what can we expect from the rest of May 2023? Today, Crypto Lists will discuss Zilliqa (ZIL) price estimates from a technical and fundamental analysis perspective.
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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- 1 Ideal for high-volume activities
- 2 U.S. consumer prices rose more slowly
- 3 Technical analysis for Zilliqa (ZIL)
- 4 Important support & resistance levels for Zilliqa (ZIL)
- 5 What speaks for the rise in the Zilliqa (ZIL) price
- 6 What indicates further downfall for Zilliqa (ZIL)
- 7 What do analysts and experts say?
Ideal for high-volume activities
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 offers many features common to other cryptocurrency projects, such as smart contracting, transaction settlement, and token issuance, but Zilliqa is ideal for products and services that may garner a high volume of activity.
This project was launched in June 2017 by co-founders Amrit Kumar and Xinshu Don, and it is important to say that Zilliqa differs from Bitcoin because everything goes much quicker on this network. Zilliqa offers developers to use its proprietary language, Scilla, and it uses a sharding process that splits its infrastructure into several interconnected blockchains to support more transactions.
Zilliqa enables its users to create user-friendly dApps more easily, and it is one of the fastest-growing blockchain ecosystems. 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 vote on network upgrades. Zilliqa (ZIL) has weakened more than 30% since April 23, and the risk of further decline for ZIL is probably not over.
U.S. consumer prices rose more slowly
The cryptocurrency market showed a minor recovery this Wednesday after the U.S. reported that Consumer Price Index (CPI) rose 4.9% year-over-year in April, against expectations of a 5% increase. According to analysts, this news is evidence that the Federal Reserve is on the right track in its fight against inflation, but investors should keep in mind that inflation remains far above the Fed’s target, and the path to 2% will be bumpy.
“I don’t necessarily think it’s a blazing bullish report, but it’s going to give some people the option to argue for a pause and a pivot from the Fed, which I don’t think is the case. I think the Fed will raise rates again in June and then pause. I don’t see a pivot in all of 2023.”
– Kenny Polcari, Chief Market Strategist, Slatestone Wealth
Federal funds are now at a rate in the range of 5% to 5.25% (the highest level since January 2006), 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.
The main question remains how much time Fed will need to hold policy at restrictive levels, and if companies’ earnings continue to fall short of expectations, the market’s reaction could be severe.
Tighter credit conditions for households and businesses are expected to weigh on economic activity, and the famous investor Jeremy Grantham warned that the U.S. stock market could experience significant losses soon.
Stocks aren’t the only assets that could significantly lose their value, and investors should keep in mind that cryptocurrencies could also be in the situation to make an even bigger fall. The crypto market displayed a high correlation with U.S. equities, and if a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere as well.
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 $0.036 to $0.022 since April 23, 2023, and the current price stands at $0.024. 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.
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 last several days have been poor for the cryptocurrency market, and cryptocurrencies have been suffering as traders remain nervous after the Federal Reserve decided to raise interest rates again by 25 basis points at its monetary policy meeting on May 03.
Fed Chair Jerome Powell said that he is not sure how long the hiking cycle may last, but any news that gives hope that the Fed is becoming less hawkish is viewed as a positive for cryptocurrencies.
Traders should also consider that the price of Zilliga (ZIL) is correlated with Bitcoin, and if the price of Bitcoin jumps again above $30000, we can see this cryptocurrency at a higher price level than the current price.
What indicates further downfall for Zilliqa (ZIL)
Zilliqa (ZIL) has weakened more than 30% since April 23, and despite this, market participants should be ready for another potential downward move.
The macroeconomic landscape remains uncertain, reflecting synchronous policy tightening aimed at containing very high inflation, worsening financial conditions, and continued disruptions from Russia’s invasion of Ukraine.
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?
The upcoming weeks will likely be a tough period for Zilliqa (ZIL), and the outlook for risk appetite in the near term is not looking good. The macroeconomic landscape remains uncertain while the crypto industry continues to face unprecedented regulatory pressure in the United States.
ShapeShift CEO Erik Voorhees said the fight between the American government and the crypto industry has just started. The crypto market sentiment is dented again, and for now, everything indicates that we could see new lows for Zilliqa (ZIL) in the weeks ahead.
Since the recent high on April 23, there has been a significant drop off in the number of whale transactions on the Zilliqa network, and when whales reduce their trading activity, it usually indicates that they are losing confidence in the underlying coin’s short-term price prospects.
Ki Young Ju, the CEO of the cryptocurrency analytical service CryptoQuant.com, said that macro risks and contagion still prevail in the crypto industry, and the rising risks of further liquidations, bankruptcies, etc., could lead again to a spike in selling pressure.
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.