The Zilliqa price has bounced back after crashing to a low of $0.0700 in May. The ZIL price is trading at $0.1280, which is about 82% above its lowest level in May. It is still 50% below its all-time high of $0.2545. It has a market capitalisation of more than $1.45 billion and is the 64th biggest cryptocurrency in the world.
What is Zilliqa? Zilliqa is a blockchain project that was built to create a platform that enables smart contracts development. The developers wanted to solve the scalability challenges that many existing projects used to solve. Scalability refers to the number of transactions a platform can process per second. It solves this by ensuring that transaction increase as the number of miners increase.
For example, if it has about 2,000 miners, it automatically creates 10 sub-networks of 200 miners. Today, the use of Zilliqa in Dapps building remains small compared to that of Ethereum, Solana, and Binance Chain. So, what next for the Zilliqa price?
In the four-hour chart, we see that the Zilliqa price has bounced back in the past few trading sessions. ZIL is trading at $0.1280, which is about 36% above the lowest level last week. On the four-hour chart, the currency has moved above the 23.6% Fibonacci retracement level. It is also above the 25-day and 50-day moving averages.
Further, it is a few points below $0.1345, which was the highest level on May 27. Therefore, in my view, a move above this resistance will be an extremely bullish factor for the coin. However, a drop below $0.1150 will invalidate this trend.
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