Zilliqa price continued bouncing back this week as the crypto bull run gained steam. ZIL has now risen for six straight weeks, moving to its highest point since August 2022. It was the first time for this consecutive rally to happen since 2018.
Crypto bull run continuesThe main reason why the Zilliqa price has jumped sharply is that investors have embraced a risk-on sentiment. Cryptocurrencies have surged, with Bitcoin trading above $73,000 and the total market cap of all coins soaring to over $2.7 trillion.
The risk-on sentiment is also happening in the stock market where the Nasdaq 100 and S&P 500 indices have soared to a record high. Most of the gains are because of technology companies like NVIDIA and Super Micro Computer (SMCI).
In most cases, Zilliqa tends to do well when cryptocurrencies and stocks are rising even when its fundamentals are not all that strong.
Fundamentally, Zilliqa is having some challenges. For example, while Zilliqa was a pioneer in Decentralized Finance (DeFi), it has no major market share. It has a Total Value Locked (TVL) of less than $10 million, down from its all-time high of over $200 million.
In contrast, other newer networks have attracted hundreds of developers and millions in assets. On Wednesday, I wrote that Blast has gained over $1 billion in a few months. Other newer platforms like Base and Sui have millions in assets.
The five DeFi networks tracked by DeFi Llama are Avely Finance, ZilSwap, PlunderSwap, Ionise, and Pillar. A look at their transaction volume shows that ZilSwap handled over $435k worth of coins in the past 24 hours. This made it the 164th biggest DEX in the industry.
There have been some important developments though. For example, Kalijo recently announced the launch of $SEED, an upcoming interest-bearing asset for ZIL and other EVM networks. Also, Avely Finance reached a milestone as the amount of stZIL minted in the network stood at over 100 million.
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Zilliqa has also made some progress in the gaming industry but it remains much behind other gaming networks like Ronin and Immutable X.
Zilliqa price prediction
The daily chart shows that the ZIL price has been in a strong bullish trend in the past few months. The token has jumped from a low of $0.0145 in September last year to over $0.045. It has flipped the important resistance point at $0.0371, its highest level in February 23rd last year.
Zilliqa has surged above the key resistance point at $0.028, its highest level in December last year. The Relative Strength Index (RSI) has moved above the overbought level. Therefore, the outlook for the coin is extremely bullish, with the initial target to watch being at $0.04515, which is about 12% above the current level.
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