Blurred vision as on-chain activity slows

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Zilliqa’s jaw-dropping comeback has faded in recent days as investors start taking profits. The ZIL token also took a break as the number of transactions on its network dropped sharply in recent days. It is trading at $0.1500, around 34.63% below its high from last week. Still, the coin remains significantly above the low level this year.

Zilliqa has been in a strong uptrend as investors buy its decline. This performance came as the platform’s developers announced its first major metaverse project. At the same time, investors flocked to fallen angels which they believe have become extremely undervalued. In addition to Zilliqa, other fallen angels that have done well recently are VeChain and Filecoin.

The price of Zilliqa has fallen sharply in recent days as many transactions have declined. For example, the Total Value Locked (TVL) in its network has fallen to $776 million, which is significantly lower than it was last week. Similarly, ZilSwap’s TVL jumped from over $249 million last week to $195 million.

Other numbers are down sharply. The number of new Zilliqa addresses fell from last week’s high of 8,351 to 851. In total, the number of active users fell to around 75,063. As shown below, the number of smart contract transactions and of daily transactions fell sharply. This is a sign that the momentum we have seen recently is fading.

Zilliqa Chain Data

Zilliqa Price Prediction

The ZIL price saw a strong rally in March this year. However, the coin recently declined slightly and moved between the 25 and 50 period moving averages (MA). The MACD also broke below the neutral level, while the Smart Money Index (SMI) made a bearish crossover.

Therefore, in my view, the Zilliqa token will fall to the key support at $0.1250 and then resume the uptrend. A drop below this support will invalidate the bullish view.

Zilliqa Award
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