- Zilliqa price has been in a strong bullish trend in the past few days.
- On-chain data shows that the number of new accounts has slowed recently.
- The number of monthly transactions and account growth has slowed.
Zilliqa price has crawled back in the past few days as investors wait for the launch of its Ethereum Virtual Machine (EVM). ZIL rose to a high of $0.034, which is a few points above the lowest level this week. So, what next for Zilliqa?
Zilliqa EVM launch upcoming
Zilliqa is a leading blockchain platform that is known for introducing the concept of sharding that has been embraced by many blockchains like Ethereum and Polkadot. Sharding increases the throughput of transactions by breaking down blocks into small units known as shards.
Zilliqa will be in the spotlight next week as the developers launch an important interoperable technology known as Ethereum Virtual Machine (EVM). EVM is a piece of software that makes it possible for developers to process Ethereum’s smart contracts.
By introducing EVM in its ecosystem, it means that Zilliqa dApps will now be compatible with Ethereum. Many other blockchains like Cardano, IOTA, and EOS have also embraced EVM compatibility recently.
Therefore, there is a likelihood that ZIL price will rise towards the launch, which is scheduled for Monday next week. After that, it will drop because of the concept known as buying the rumor and selling the news. We have seen these trends several times in the past. For example, Bitcoin tends to rise before halving and then pull back when it happens.
Meanwhile, on-chain metrics shows that the network is losing traction. For example, as shown below the network’s address growth has dropped to the lowest level on record. Its address growth this month stands at 14,200, lower than its all-time high of 264,250 in 2021.
The same trend is happening in the number of transactions. The network’s transactions this month were just 761k, lower than its all-time high of 4.7 million. This decline is likely because of the rising competition in the industry as layer 2 networks like Optimism and Arbitrum gain traction.
Zilliqa price prediction
The 4H chart shows that the ZIL coin has been in a strong bullish trend in the past few months. It has jumped by over51% from the lowest level in March. The coin is hovering at the key resistance point at $0.032, the highest point on April 2.
Zilliqa price has formed a cup and handle pattern, which is usually a bullish sign, It has moved above the 25-day and 50-day moving averages. Therefore, there is a likelihood that the coin will continue rising as buyers target the key resistance point at $0.040. It will then retreat in the coming days.
