Zilliqa’s price rose on Wednesday as investors rushed to buy the dip. The coin climbed to $0.08, significantly above this week’s low of $0.066, which was the lowest level since March. The coin’s market capitalization has returned to more than one billion dollars.
Buying the dip
Zilliqa is a leading blockchain project known for pioneering sharding technology. Sharding increases a blockchain’s throughput by splitting blocks into smaller parts called shards, which speeds up transaction processing. This approach has already been adopted by major networks such as Ethereum and Near Protocol.
In recent months, Zilliqa has made noteworthy progress as its developers aim to become a major player in the decentralized ecosystem. In April, the platform’s team published their vision for 2022 and beyond, explaining that the network will soon be EVM-compatible, allowing Zilliqa-based applications to interoperate with those built on Ethereum.
Zilliqa will also add support for Scilla and expand ZilBridge capabilities. Another major development was the launch of Metapolis, a metaverse platform positioning itself to become a leading industry player. Metapolis uses a Metaverse-as-a-Service (MaaS) model to offer brands and organizations an XR-based engagement layer.
Zilliqa also joined the Blockchain Game Alliance (BGA), an organization focused on advancing the games industry through blockchain technology.
The price of Zilliqa rose as investors bought coins that had fallen sharply in recent weeks. Demand for the token increased despite on-chain data indicating a slowdown in network activity.
Zilliqa price outlook
ZIL staged a strong rebound from its low around $0.065. On the four-hour chart, the coin has moved slightly above the 25-day and 50-day exponential moving averages. At the same time, the MACD is approaching the neutral line.
The price appears to be forming a break-and-retest pattern. It is likely that ZIL will move higher and retest resistance at about $0.1010, which acted as a low on April 13 and 18. If the token fails at that resistance, the prior downtrend could resume.