Zilliqa price has made a spectacular comeback in the past few weeks as cryptocurrencies recover. The ZIL token surged to a high of $0.0306, the highest level since November 8. It has jumped by more than 102% from the lowest level in 2022, making it one of the top performers in the crypto universe. Other cryptocurrencies like Bitcoin, Ethereum, and AGIX have all risen sharply.
Why is ZIL price soaring?
There are two main reasons why the Zilliqa price is soaring. First, the this rebound is because of the ongoing macro environment. Data published last week showed that the American consumer price index (CPI) dropped for the sixth straight month. This means that investors believe that the Federal Reserve will start pivoting in the coming months. Historically, cryptocurrencies tend to outperform in a period when the bank is in a dovish tone.
Second, Zilliqa rose because of Friday’s bank earnings. Most Wall Street banks, including Wells Fargo, JP Morgan, and Citigroup, warned that the economy was entering a mild recession. While that prognosis was a bad one, the reality is that it means that the Fed has more urgency to start easing its rate hikes. Analysts believe that the bank will likely continue hiking at a slower pace in the coming months.
Therefore, Zilliqa is rising as investors predict that 2023 will be a better year than it had in 2022. Other cryptocurrencies like Bitcoin, Ethereum, and Cardano have all staged a strong recovery. However, internally, Zilliqa is not doing well as the total value locked (TVL) in its DeFi protocol crashed to just $5 million. At its peak, Zilliqa had a TVL of more than $200 million.
Another key catalyst for Zilliqa is this week’s Davos meeting. Zilliqa’s senior executives will be among the top speakers in the event. The CEO will speak on gaming and other Web3 businesses.
Zilliqa price forecast
I wrote about Zilliqa last week. At the time, I wrote that the coin was surging as the developers prepared to upgrade the network to EVM compatibility. Now, looking at the daily chart, we see that the coin has surged above the important resistance level at $0.0237, the highest point in December. Zilliqa has managed to move above the 50-day and 100-day moving averages. It is approaching the important 200-day MA. The Relative Strength Index (RSI) moved to the overbought level.
Therefore, I suspect that the ZIL price will continue rising as buyers target the key resistance level at $0.040. A drop below the support at $0.026 will invalidate the bullish view.
