break and retest formation in progress
The Zilliqa price went vertical on Wednesday as investors rushed to buy the coin’s dip. The coin rose to a high of $0.08, which is significantly higher than this week’s low of $0.066, which was also the lowest point since March. Its market value has moved back to over a billion dollars.
Buying the dip
Zilliqa is a leading blockchain project that is well-known for inventing sharding technology. This is a technology that increases a blockchain’s throughput by breaking the blocks into smaller pieces known as shards. By so doing, it makes it much faster in handling transactions. The technology has already been embraced by some of the biggest blockchains like Ethereum and Near Protocol.
Zilliqa has made a lot of progress in the past few months as the developers seek to become a leading player in the broader decentralized industry. For example, in April, the platform’s creator unveiled its vision for 2022 and beyond. In it, he elaborated how the network will soon be EVM compatible, meaning that its apps will be compatible with those built in Ethereum.
Read more Zilliqa price prediction.
Zilliqa will also start supporting Scilla and then improve the ZilBridge capabilities. Another key event was the launch of Metapolis, a leading metaverse platform that seeks to become a leading player in the industry. It uses a model known as Metaverse-as-a-Service (MaaS) that brings XR-powered layer of engagement to brands and other organizations.
Further, Zilliqa became a member of the Blockchain Game Alliance (BGA), which seeks to transform the gaming industry.
The Zilliqa price went vertical as investors bought the dip since the coin has dropped dramatically in the past few weeks. It also rose as demand for the coin rose even though on-chain data shows that activity in the network was slowing down.
Zilliqa price prediction
The ZIL token made a strong rebound after bottoming at about $0.065. On the four-hour chart, the coin managed to move slightly above the 25-day and 50-day exponential moving averages. At the same time, the MACD is approaching the neutral line.
The coin seems to be forming what seems like a break and retest pattern. In it, I suspect that it will move up and retest the resistance at $0.1010, which was the lowest level on April 18th and 13th. If this happens, the coin will then resume the downward trend.