The Zilliqa price has come back to form in the past few weeks. As a result, ZIL has become one of the hottest cryptocurrencies in the industry. Its price has jumped to $0.1458, its highest level since May 2021. It has jumped by over 338% from its lowest level this year, bringing its total value to over $2 billion, making it the 63rd biggest coin globally.
Return of a fallen angel
Zilliqa was once a leading blockchain project that introduced the concept of sharding. This is a technology that enables blocks to be sliced and diced into smaller pieces known as shards. Since then, it has been embraced by other blockchain platforms like Ethereum, Polkadot, Near Protocol, and Elrond.
At its peak, Zilliqa was a hot coin that ranked in the top 30 of the biggest cryptocurrency industry. This changed in 2021 as its price dropped and its rank crashed, making it a fallen angel. Investors were concerned about the lack of interest from developers and the fact that competition in the industry was rising. Indeed, we now have many highly scalable projects like Terra and Solana.
The Zilliqa price has resurrected in the past few days as investors waited for an upcoming upgrade that will make it much better. Also, some of the recent collaborations have led many investors to predict that ZIL is here to stay. For example, Zilliqa partnered with Ramp to leverage payments for the ZIL token. Further, the ecosystem has grown rapidly in the past few months and currently includes products like 7B Crypto, SimpleHold, and BizChain, among others.
It is unclear whether the ZIL price will continue rising in the near term. Historically, such parabolic moves rarely last forever. For example, we saw coins like Cardano and VeChain jump sharply in 2021, only for them to retreat. Therefore, the coin will likely retreat sharply once the distribution phase starts.
Zilliqa price prediction
The ZIL coin has been in a spectacular comeback recently. It even managed to move above the important resistance at $0.1386, which was the highest point in August. At the same time, the accumulation and distribution and smart money index (SMI) have all risen, signalling that people are still buying the coin as the fear of missing out (FOMO) intensifies.
Therefore, there is a likelihood that the Zilliqa price will have a pullback as it enters the distribution phase. If this happens, the next reference point will be at $0.10. A move above $0.15 will invalidate this view.
