Zilliqa (ZIL) Up 40% Showing Market Dominance: Here’s Why
Zilliqa, which surprised the crypto market in March with a 400% pump, shows strength again
Zilliqa, who disrupted the entire cryptocurrency market Back in late March and early April, the market again surprised with an unexpected 40% pump following the Fed’s rate hike.
Zilliqa’s unexpected move was not followed by a fundamental change or update in the currency’s network, nor any news related to the project. But there are a number of market factors that can push ZIL further up.
Market relief after interest rate hike
While traders did not view the rate hike as anything bullish for such a volatile type of asset like cryptocurrencies, cryptocurrencies are performing exceptionally well as the Fed tightens monetary policy. Bitcoin and Ethereum have gained 5% to 10% in value while ZIL beats them all at a 40% pump.
Source: Trading Display
The reason behind such a sharp rise in price has nothing to do with traders’ firm belief in ZIL. Instead, the main fuel for the rally is the extreme volatility of the asset, which was previously up around 400% in a few days.
Zilliqa gets oversold
The only technical explanation behind such a strong price could be linked to the fact that ZIL was one of the most actively sold cryptocurrencies in the market after rallying at 400%. According to the daily chart’s Relative Strength Index, ZIL reached the oversold zone just before the 40% pump.
Historically, it has actively bounced the oversold and overbought ranges of the RSI whenever the indicator’s values fell below or 30.
At the time of writing, ZIL is trading at $0.09 and is trying to break through the 50-day exponential moving average, which would set the coin up for another short- or medium-term rally.