Zilliqa price has been in a strong bearish trend in the past few months as demand for the coin continues. ZIL crashed to a low of $0.028, which was the lowest level since November 2020. It has crashed by more than 87% from its highest level this year, giving it a market cap of $385 million.
ZIL crash continues
Zilliqa is an innovative blockchain project that introduced the important concept of sharding, which has been embraced by leading networks like Ethereum, Elrond, and Near Protocol. Sharding boosts a network’s throughput by breaking blocks, a network is able to cut improve the overall throughput.
Zilliqa is a layer-1 network that has been used to build applications in all industries, including finance and NFTs. Some of the top applications created in Zilliqa are Xfers, LunarCrush, XCad Network, and Human Protocol among others.
Zilliqa also hopes to become a leading player in the gaming industry. Earlier this year, the developers launched Metapolis, a metaverse platform where people can meet virtually and play games. They are also building Web3War, a first-person shooter game.
Like all cryptocurrencies, ZIL price has not had a good year for several reasons. First, interest rates have surged this year as central banks battle to contain soaring inflation. In the US, rates have risen by 300 basis points and are expected to rise by another 125 bps this year. As a result, investors have dumped Zilliqa and other cryptocurrencies this year
Zilliqa price has also dropped because of low activity in its ecosystem. Data published in its website shows that the total value locked (TVL) in its DeFi ecosystem has dropped sharply this year. The same is true for other areas in its ecosystem.
The most recent crypto news on Zilliqa was the appointment of Mark Hemsley as the Chairman of the Board. He was the President of Cboe Europe and Executive President of Cboe Global Markets. Another important news is that Zilliqa plans to launch Zilliqa 2.0, which will be a proof-of-stake network.
Zilliqa price prediction
So, should you buy Zilliqa? The daily chart shows that the ZIL price has been in a strong bearish trend in the past few months. It was trading at $0.029 on Friday, which was an important support level on June 18. The coin crashed below all moving averages while the Relative Strength Index (RSI) moved below the neutral point.
Therefore, Zilliqa price will likely continue falling as sellers target the key support at $0.025. A move above the resistance point at $0.031 will invalidate the bearish view.