The Speed of Zilliqa’s Network
Zilliqa is a blockchain platform that aims to enhance user scalability by utilizing sharding, which divides the network into smaller sections. With this sharded architecture, Zilliqa enables nodes to process only a subset of transactions, speeding up the process.
Unlike Bitcoin, which operates slower, Zilliqa offers developers the ability to use its proprietary programming language, Scilla. This allows them to execute custom programming logic (smart contracts) and develop decentralized applications (dApps) for a range of services.
ZIL, the native token of the Zilliqa blockchain, is designed to facilitate and scale dApps across various sectors, from finance to NFT marketplaces. By holding ZIL, users can engage with dApps and services on the Zilliqa blockchain and participate in network governance through voting.
However, Zilliqa (ZIL) has seen a decline of over 30%, and there is still a risk of further drops in the token’s price. The recent market downturn has left investors cautious, and many are continuing to withdraw their funds from exchanges.
Ролята на Федералния резерв
The U.S. economy faces risks of a recession, which could further dampen sentiment in the crypto market. The key question remains: How long will the Federal Reserve keep its policy at restrictive levels? The federal funds rate is currently between 3.75% and 4%, the highest since January 2008. Experts predict a contraction in the economy over the coming months, which will likely impact corporate profits.
There is a significant chance that the Fed will raise rates by 50 basis points during its meeting next week, with rates possibly peaking at 4.98% in May 2023. As investors remain cautious and steer clear of riskier assets, any comments from the Fed will be highly scrutinized. The cryptocurrency market remains closely tied to the stock market, making it vulnerable to macroeconomic changes. Additionally, data suggests Bitcoin may not have reached its bottom yet. CNBC’s Jim Cramer recently advised cryptocurrency investors to sell their positions while they still have time.
Most digital currencies, including Bitcoin, have lost a substantial portion of their value, with Bitcoin down nearly 65% since the start of 2022. Despite efforts to prop up the market, it bears similarities to the dotcom bubble collapse.
– Jim Cramer, CNBC
Given the current market conditions, the upside potential for Zilliqa (ZIL) appears limited. Traders should keep an eye on Bitcoin’s performance and consider short positions for the time being.
Zilliqa (ZIL) Technical Analysis
Since November 06, 2022, Zilliqa (ZIL) has dropped from $0.033 to $0.019, with the current price sitting at $0.022. The token may struggle to stay above the $0.020 mark in the coming days, and a drop below this threshold could signal a further decline toward the $0.018 level.
The trendline on the chart shows that as long as the price remains below this line, we cannot consider a trend reversal, and ZIL will remain in the SELL-ZONE.
Key Support and Resistance Levels for Zilliqa (ZIL)
From the chart since July 2022, key support and resistance levels have been highlighted to help traders gauge potential price movements. Zilliqa (ZIL) is still under pressure, but if the price rises above the resistance level of $0.030, the next target could be $0.035. If the price breaks the current support at $0.020, this would signal a “SELL” position, potentially pushing the price toward $0.018. A drop below the critical psychological support at $0.015 could see the price dip to around $0.010.
Фактори, подкрепящи покачването на цената на Zilliqa (ZIL).
While Zilliqa’s (ZIL) upward potential remains constrained for now, should the price move above $0.030, the next target could be $0.035, or even $0.040.
Any news suggesting that the Federal Reserve is easing its hawkish stance could have a positive effect on cryptocurrencies. If the Fed signals a reduction in the pace of rate hikes during its meeting on December 13, ZIL might see a price increase from its current levels.
Indicators for a Further Drop in Zilliqa (ZIL) Price
Zilliqa (ZIL) has already weakened more than 30% since November 06, and further downside is still a possibility. The fallout from the FTX bankruptcy continues to raise concerns among investors, leading to further asset withdrawals from exchanges. The current support level for ZIL is $0.020, and a break below this would likely bring the price down to $0.018 or lower.
Прозрения от анализатори и експерти
The fundamental value of Zilliqa (ZIL) is closely tied to the broader cryptocurrency market, which makes it susceptible to further downtrends. Experts suggest that the price of ZIL could fall even lower before the current bear market finds its bottom. The recent turmoil in the crypto space has led to increased skepticism, with analysts like Peter Schiff, CEO of Euro Pacific Capital, urging investors to exit before further losses. Salah-Eddine Bouhmidi, Head of Markets at I.G. Europe, believes Bitcoin could fall to $13,500 by the end of the year, which would likely drag ZIL down even further.
Отказ от отговорност: Cryptocurrency is highly volatile and may not be suitable for everyone. Only invest what you can afford to lose. The information on this site is for educational purposes and should not be interpreted as investment or financial advice.
