Zilliqa (ZIL) Price at Risk Ahead of Staking Contract Upgrade
The Zilliqa price is attempting to recover ahead of a mainnet upgrade set for later today. ZIL is trading at $0.2115, which is slightly above the overnight low of $0.1966. It has a market cap of more than $2.3 billion, making it the 59th biggest cryptocurrency in the world. It is sandwiched between Chilliz and Yearn.finance.
The background: For starters, Zilliqa is one of the several blockchain projects that aim to help developers build decentralized applications. The project emerged from the National University of Singapore and went live in 2019. Unlike other popular proof-of-stake networks like Polkadot, Ziliqa use what it terms as eco-friendly dual mining. Other notable features of the ecosystem is its sharding and smart contracts. More than 60 projects have been built on the platform.
What happened: The biggest news today is that the Zilliqa network will start the version 8 upgrade today. The update will help users be able to transfer stakes from one account to another without penalties. It will also address the contract state bloating issue and change the parameters as shown below.
Zilliqa price prediction
The daily chart shows that the Ziliqa price has been in a strong upward trend in the past few months. It has risen by more than 1,200% in the past 12 months. Nonetheless, the price seems to have found a strong resistance close to its all-time high. The price has also formed an ascending wedge that is shown in black. There is also a bearish divergence pattern as evidenced by the Relative Strength Index (RSI).
Therefore, there is a possibility that the price will start retreating in the near term. Such a move will be confirmed if it manages to move below the lower line of the channel. However, a move above$0.25 will invalidate this trend.