The Ziliqa price has been on a strong upward rally in the past few months. This week, the ZIL price soared to an all-time high of $0.2044, bringing the total year-to-date (YTD) gains to more than 160%. It has risen by more than 5,000% from its lowest level in 2020. It has a total market cap of more than $2.0 billion.
What is Ziliqa? Started in 2017, Ziliqa is a blockchain project that helps developers build highly-scalable projects. It was the first project to launch its main net using the concept of sharding, which is simply the process of dividing the mining network into smaller shards. It also introduced anew programming language that follows a dataflow style that helps simplify running of large-scale computations. ZIL is the native token used in the Ziliqa ecosystem.
On the daily chart, we see that the ZIL price has been in a strong upward trend in the past few months. Recently though, the price has formed an ascending channel that is shown in black. In purple. In fact, we see that it is currently slightly below the upper side of this channel. It is also slightly above the 25-day and 50-day moving averages while the price has formed a three-peaks pattern, which is usually a bearish sign.
Therefore, in my view, the ZIL price will likely drop in the near term as bears target the lower side of the pattern, slightly below $0.12. However, a jump above the upper resistance level will mean that there are still buyers focused on pushing it higher.
