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Zilliqa (ZIL): Good buy or Goodbye?

By 12/04/2018 No Comments

Markets are cooling down… but developers are fired up. Today we’ll be taking a look at Zilliqa (ZIL), a platform for decentralized applications that could give Ethereum a run for its money. I’ll also take a look at Zilliqa’s price action versus the U.S. dollar and Bitcoin to see if there are any trading opportunities.

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A Zilliqa (ZIL) Fundamental Overview

Unlike other blockchains, Zilliqa uses sharding to make the most efficient use of hashing power. Each node validates only a fraction of the blockchain’s total data, allowing Zilliqa to process more data in a shorter time. That means Zilliqa can handle bigger decentralized applications.

Zilliqa’s ability to scale has attracted interest from developers on other blockchain platforms. Etheremon, an Ethereum-based Pokemon game, recently shifted to Zilliqa after the gas prices for Ethereum transactions soared to over a dollar. Those gas fees add up and make Zilliqa a more attractive blockchain for developers.

That makes Zilliqa look like a good bet, but is too good to be true? It’s still too early to tell. The blockchain hasn’t even launched its mainnet, which is currently scheduled for early next year.

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Zilliqa: ZIL’s Technical Points

Now let’s take a look at Zilliqa’s price action and see what technical analysis has to say. On the daily chart Zilliqa’s value versus the U.S. dollar,( ZIL/USD) remains near the all-time-lows after the last wave of bearish momentum attacked the crypto back in November. Before that, it consolidated for three months around the key pivot zone at around $0.036, which was a support level back in March 2018 when Zilliqa first started trading in the markets. The price action also remains below the Ichimoku cloud, indicator, with the future cloud flattening.

Zilliqa - ZIL/USD Technical Analysis - Daily Chart

Zilliqa – ZIL/USD Technical Analysis – Daily Chart

With that, unless there is an amazing catalyst, we could see the price bounce around the current levels for a bit longer, which for Zilliqa fans could be considered a buying opportunity. The key resistance level for ZIL at this point is around $0.065, at which you could consider taking profit in the future. For any trading activity though, please remember to only invest the money you can afford to lose as cryptocurrencies carry a ton of volatility risk.

ZIL/BTC Technical Analysis

Looking at Zilliqa’s price action versus Bitcoin, the chart is almost identical to that of ZIL/USD.

ZIL/BTC - Zilliqa Technical Analysis

ZIL/BTC – Zilliqa’s Price Action versus Bitcoin

However, if Bitcoin starts strengthening without Zilliqa catching the wave, we could see further drops in this pair towards new lows, because Bitcoin has the potential of seeing far greater gains than the USD.

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Now I’d like to hear from you. Do you think the current lows are a buying opportunity for Ziliqa? Or you think we’ve seen the best of this crypto and should just stay away?  Let me know in the comments, and subscribe to get more updates. Remember that as the 4th point of the IDDA technique, you must calculate your risk tolerance before deciding on the investment strategy that is suitable for your portfolio.

Don’t forget to complete your risk management due-diligence before developing your investment strategy.

Invest responsibly,

Kiana

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