Last week’s 210% bullish swing sparked renewed interest in Zilliqa.

Since reaching a high of $0.26 last May, a prolonged decline followed. It started with a vicious sell-off with $ZIL finding support at the $0.06 level.

Although the bulls tried to fight back, after encountering resistance around $0.13, the downtrend continued on its way in September. A local bottom was found at $0.03 in mid-February. This was preceded by a tight trading range between $0.03664 and $0.04432.

Source: TradingView.com

However, last week’s explosive breakout confirmed a convincing break from the nearly seven-month downtrend. With that, investor interest in Zilliqa has returned.

But can $ZIL build on this momentum and sustain the reversal?

Zilliqa breakup takes the market by surprise

During the downtrend period, Bitcoin and other Layer 1s saw considerable gains, particularly from September to November 2021. But with Zilliqa reeling at the time, some took this as evidence that the project was dead.

It was only the last month or so that the technicians indicated a change. The week starting March 14, the price rose marginally above the downtrend line. But it wasn’t until the explosive breakout the following week that the general market sentiment changed.

In an email to CryptoSlate, Zilliqa metaverse and NFT head Sandra Helou said the bombshell did not surprise those close to the project. She further commented that the price move was “not a mistake” considering the team’s focus on growing the ecosystem, even during the lull.

“The recent bombshell, while surprising the rest of the market for those who had already invested in Zil and were aware of the growth and vision of our ecosystem, was not a surprise. Zilliqa has always been referred to as a sleeping giant and with our focus and attention on many verticals aligned for growth, it is no mistake that this movement in price is happening.”

$ZIL Price Analysis

The past few days show that $ZIL is acting in reverse of the broader crypto market. While the market saw modest gains at the start of this week, $ZIL saw a slight drop as the bulls regrouped after the breakout over the weekend.

Similarly, Wednesday sees a continuation of the bullish shape for $ZIL with a +80% swing to the upside on the daily candle, while the rest of the market consolidates with a minor bias to the sell side on Wednesday.

The sheer volume that occurs with price spikes suggests a sustained move. However, traders should note that the Relative Strength Index (RSI) on the weekly time frame has slipped over 70 into overbought territory. Taken in isolation, that doesn’t necessarily indicate an imminent drop, just that bullish fatigue could be a factor in the next short-term price action.

Esports on the rise

Supporting this reversal are several significant fundamental developments. First of all, there is the exceptional growth of esports in recent times.

Referring to research by technology consultants Activate, Syracuse University noted that US esports viewership will exceed that of every professional sports league except the NFL by 2021.

Source: onlinegrad.syracuse.edu

Similarly, a report of the global esports market by Newzoo two years ago found that 2019 revenue hit $950 million. However, thanks to more integration into popular culture, Newzoo’s latest revenue estimate for 2022 is $1.8 billion, almost double that of 2019.

Zilliqa’s head of marketing, Art Malkov, said that Zilliqa’s strategy in this area is to combine esports with playing to win, which has also shown a significant rise in popularity recently. In that way, the company is positioned to capitalize on growth on both fronts.

“Zilliqa is strongly positioned to lead the evolution of blockchain and gaming. With a projected $200 billion at stake by 2024 in the P2E industry, Zilliqa is positioned to capitalize on this growth.”

Metapolis is coming

But perhaps the most significant factor in the recent price action is Metapolis, which launches as an early access event in Miami on April 2.

Commenting on Metapolis, Malkov said that the Metaverse-as-a-service (MaaS) concept sets it apart from competing Metaverses. In that, users are free to create their digital world as they please; this has collateral effects from a commercial point of view.

“Metapolis is a blank canvas; brands define their space to be what they want it to be. As a MaaS platform, Metapolis creates digital locations that are tailored to the unique needs of each of its clients.”

Malkov also mentioned key aspects of using the latest game engines, Unreal Engine and Unity, for “visually compelling” experiences. As well as security consideration with Know Your Customer (KYC) controls built into the protocol.

As always, what happens to alternative prices is largely determined by the market leader, Bitcoin. But with so much going on at Zilliqa, the fundamental force to support the price is there.

The Post-Zilliqa Breakout: A Look Behind the Numbers appeared first on CryptoSlate.



This post The Zilliqa Breakup: A Look Behind the Numbers

was published first on https://cryptoslate.com/zilliqas-breakout-a-look-behind-the-numbers/

Author

Write A Comment