The breathtaking Zilliqa comeback has faded in the past few days as investors start taking profits. The ZIL token has also paused as the number of transactions in its network has dropped sharply in the past few days. It is trading at $0.1500, which is about 34.63% below its highest level last week. Still, the coin remains significantly above the lowest level this year.
Zilliqa has been in a strong bullish trend as investors buy its dip. This performance happened as the platform’s developers announced its first major metaverse project. At the same time, investors have been rushing to fallen angels that they believe have become extremely undervalued. In addition to Zilliqa, other fallen angels that have done well recently are VeChain and Filecoin.
The Zilliqa price has dropped sharply in the past few days as many transactions have declined. For example, the total value locked (TVL) in its network has dropped to $776 million, which is sharply lower than where it was last week. Likewise, ZilSwap’s TVL has fallen from more than $249 million last week to $195 million.
Other numbers have been falling sharply. The number of Zilliqa new addresses has dropped from last week’s high of 8,351 to 851. In total, the number of active users has dropped to about 75,063. As shown below, the number of smart contract transactions and daily transactions has fallen sharply. This is a sign that the momentum we saw recently is fading.
The ZIL price had a strong recovery in March this year. However, the coin has recently declined slightly and moved between the 25-period and 50-period moving averages (MA). The MACD has also moved below the neutral level, while the smart money index (SMI) has made a bearish crossover.
Therefore, in my view, the Zilliqa token will drop to the key support at $0.1250 and then resume the bullish trend. A drop below this support will invalidate the bullish view.
This post was last modified on %s = human-readable time difference 09:34