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Zilliqa (ZIL)

Users Flock in to Stake Over 1 Billion ZIL Tokens Hours After Zilliqa’s Mainnet Launch

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Just hours after the official launch of Zilliqa’s non-custodial staking platform on its mainnet, users flocked in to stake more than one billion ZIL tokens. Confirming the news, Zilliqa’s official Twitter handle tweeted,

The blockchain also unveiled a new fungible governance token, gZIL, as part of its launch to the network which will be earned alongside staking rewards. Additionally, it is also meant to function as an incentive for long-term token holders. gZIL token will also enable the long-term token holders to stand to become part of the Zilliqa ecosystem’s governance mechanism. It is a limited time token and will only be issued for approximately one year with its value derived from its scarcity. Besides, a market cap of 682,550 has been placed on gZIL minting and distribution.

Amrit Kumar, President and Chief Scientific Officer of Zilliqa, commented,

“After months of rigorous testing with the help of our enthusiastic community, staking is now finally live on Zilliqa, marking a major milestone for our team this year. As one of the first sharded blockchains to implement staking onto the network, we are thrilled to be joining the ranks of some of our most innovative peers, as we continue to build out future-fit DeFi offerings.”

In related news,  Zilliqa had recently announced the launch of its first decentralized exchange dubbed, ZilSwap, in collaboration with another DEX platform Switcheo, adding to the trend of growing decentralized exchanges.

This DEX built by Switcheo claims to be a fully on-chain, scalable public blockchain platform aimed at pushing the ecosystem into the decentralized finance space by enabling users to trade digital assets on the Zilliqa blockchain. Zilawap is by Switcheo developers. Additionally, the platform will support Singapore-Dollar [SGD] backed stablecoin, XSGD. The first token pool during the launch will be ZIL-XSGD.

Similar to Uniswap, it leverages constant product automated market maker on top of a permissionless liquidity protocol and allows users to trade ZIL or ZRC tokens directly on the blockchain from their wallets, or add tokens they are holding to a liquidity pool to passively earn as market makers.

ZIL’s Price Response

Despite these developments, its native toke ZIL has failed to respond positively. At the time of writing, ZIL was down by 3.11% over the last 24-hours driving its price to $0.0191. Since its 2020-peak of June, when the token was priced at $0.0298, ZIL was down by over 35% as the downtrend showed no signs of stopping.

Zilliqa price analysis: Not a great time to be involved in the ZIL trade

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Zilliqa is not having a great day. It’s trading in the red zone. 0.87% and 3.54% daily and weekly, respectively. Those are not terribly bad numbers for sure, but they do remain red at a moment in which almost everybody else is at least slightly green.

But the current losses in ZIL don’t tell the whole story. The coin’s price sunk to $0.018 only a few days ago and it’s been recovering steadily ever since. It’s currently trading at 0,020454, and it’s been somewhat stable at that level for a while already.

Stable is the opposite of “trendy,” of course. The currency seems stuck at 0,0211, and it isn’t apparent what could shake things up a bit so that a discernible trend shows up again. Lack of trend means it’s not an excellent time for trading, but even so, things look auspicious.

24-hour technical analysis

The current price is a tiny bit below the pivot point (0,021199), so the market can turn bullish with just a little push. Then it will have a lot of room to expand because the first resistance level is rather high at 0,022184.

Every technical indicator is relatively green, and only one of the moving averages is not for the bulls, so basically, every possible signal for buying is active. The Fibonacci scenario is precisely the same because, coincidentally, the Fibonacci pivot point and first resistance level are the same as the traditional ones.

Zilliqa
Source: CoinMarketCap.com

Monthly technical analysis

The monthly scenario is more of a mixed bag. Here, we’re already above the pivot point but very far from the first resistance level (0,024359). This tells us that the daily first resistance level is unlikely to stop the coin’s increase in value, especially if we see high trade volumes as the price goes up – when and if it goes up. In fact, the first monthly resistance level is higher than all three daily resistance levels so they could all turn out to be irrelevant if the bulls find their momentum.

The problem is that the monthly resistance level is unlikely to be up for a test because the monthly scenario is not bullish as the daily one. It’s quite bearish, in fact. Six out of seven technical indicators are pointing at selling, as do most of the moving averages.

So today is not a great day to be involved in the ZIL trade. The market is way too confused, and while there was a clear trend earlier, it seems that the price is stuck in the sideways business right now and it could remain there for the rest of the day, or even for several days.

Disclaimer: The presented information is subjected to market condition and may include the very own opinion of the author. Please do your ‘very own’ market research before making any investment in cryptocurrencies. Neither the writer nor the publication (TronWeekly.com) holds any responsibility for your financial loss.