MANALI (CoinChapter.com) — Blockchain platform Zilliqa’s native token ZIL’s recent bull run has seen its prices register more than 373% gains in the last seven days. ZIL surged from Mar 25’s low of $0.046 to reach an intraday high of $0.221 on Mar 31.
The uptrend helped ZIL become the 55th largest cryptocurrency, with a market cap of $2.3 billion. Moreover, the Zilliqa token jumped more than 26% on Thursday to reach an intraday high of $0.22 from the day’s low of $0.175 before profit booking pared prices.
A likely reason behind ZIL’s near-vertical price rise is the upcoming launch of its so-called “metaverse-as-a-service” platform in Apr. Dubbed the Metapolis, Zilliqa built the platform on Nvidia Omniverse. Moreover, Zilliqa claims it already has $2 million in pre-launch revenues.
Furthermore, Metapolis partnering with Agora also inspired the investors. Zilliqa also announced a partnership with payments infrastructure provider Ramp to help facilitate fiat to crypto payments of the ZIL token.
The metaverse is a nascent market sector that combines virtual reality (VR), augmented reality (AR), and the internet to create the real world in the digital space.
Also Read: ZIL price doubled after Zilliqa-powered metaverse Metapolis partners with Agora and Ramp.
According to reports, both VR and AR markets are likely to register explosive growth by 2025, with the AR sector rising to $77 billion (from the current $15.3 billion) and the VR markets expanding to $20.9 billion. Traders and investors believe the metaverse’s growth to be equally exponential.
With Grayscale stating that the metaverse would likely grow to become a $1 trillion market, it is understandable that investors followed the hype around Zilliqa’s metaverse project.
In addition, Zilliqa’s recent partnerships and the network’s growth helped promote confidence in the project. The number of Zilliqa addresses has grown every quarter since Q4 2020, suggesting a steady network growth.
On the other hand, ZIL’s recent price boost has come at an unsustainable rate. As a result, the Zilliqa token would likely reverse its trend soon.
Zilliqa Price Charts
Zilliqa’s prices continue to have bullish cues, such as the upcoming golden cross between the token’s 20-day moving average (red wave) and 200-day MA (green wave). The golden cross is a bullish technical pattern that forms when a short-term MA line crosses above a relatively long-term one.
Bulls could take cues from the golden cross to continue pushing the trend upward.
If ZIL prices continue their ongoing rally, the token would likely flip immediate resistance near $0.2, a price level that supported ZIL during May 2021. Further upside movement would likely see Zilliqa prices target resistance near $0.22.
Finally, a sustained rally could see ZIL challenge resistance at $0.243, near its previous ATH.
Meanwhile, ZIL prices continue to be overbought after the Zilliqa token’s relative strength index moved above 70 on Mar 26. Currently, RSI for the Zilliqa token is at 91.46
Traders often consider an overbought RSI a prelude to an upcoming trend reversal in bears’ favor. As such, overbought RSI levels often trigger sell-offs. However, Zilliqa has maintained its bull run despite an overbought RSI.
Also Read: Decentraland’s MANA rallies after hosting the first-ever Metaverse Fashion Week.
But, it seems bears are moving to book profits, as the long upper wick on Mar 31’s candle suggests. If ZIL’s bull run falters, the token would likely test support near $0.173, failing which the Zilliqa token would fall to support near $0.156.
Finally, a marketwide sell-off could push ZIL prices down to support near $0.14 before Zilliqa’s recovery.
At the time of writing, ZIL was trading at $0.175, down 2.8% on the day.
