Zilliqa (ZIL) continues its supersonic bull run this week after reports that it will officially launch a platform called metaverse-as-a-service (MaaS) in April.
ZIL was up nearly 25% in a day at $0.22 per token on Wednesday, its best level since May 13, 2021.
Its strong move came as part of a bounce rally that began on March 26 when it was trading as low as $0.047. As a result, his net profits in the last six days exceeded 350%.
metaverse FOMO
Traders began flocking to the Zilliqa marketplace a day after it announced the launch of Metapolis, a MaaS platform built on Nvidia Omniverse, during a VIP event on April 2 in Miami.
The metaverse concept and the companies trying to build it attracted nearly $3 billion in funding in 2021, up from $2.33 billion the year beforeaccording to data intelligence firm Dealroom.
In particular, metaverse developers have been creating everything from virtual events to host fashion shows to entire marketplaces selling real-world physical products, as well as digital ones accompanied by non-fungible tokens (NFTs). In November 2021, Facebook’s parent company also changed its name to Meta Platforms Inc. to show its new focus on apps in a virtual universe.
Zilliqa shared its plans to tap into the booming industry through Metapolis, revealing that it had already “raised $2 million in revenue prior to launching its client base”including Agora, a digital art platform that would host a virtual awards event in the Zilliqa metaverse.
ZIL, which serves as a utility token within the Zilliqa ecosystem to run smart contracts and cover transaction fees, appears to be benefiting from the metaverse hype.. However, from a technical perspective, the coin has rallied too far too fast to keep its gains near local highs.
ZIL sale ahead?
Zilliqa has become an “overbought” asset on both its daily and weekly period charts, based on its Relative Strength Index (RSI) readings above the 70 threshold, as of March 31.
ZIL saw a sell-off as it approached its interim resistance level of $0.235, also the 1.0 Fib line of the Fibonacci retracement chart, drawn from the $0.235 high to $0.037 low.
As such, the ZIL/USD pair fell over 12% to test the 0.786 Fibonacci line near $0.193 as interim support, seeing further downward momentum with its RSI still above ’70’.
Holy Crypto…. $ZIL
90 RSI and at resistance, if you own this, probably not a bad time to take profit pic.twitter.com/slyUrEsG1C
— Don’t Follow ShardETH B If You Hate Money $ (@ShardiB2) March 30, 2022
Holy crypto… $ZIL
RSI 90 and at resistance, if you own this probably not a bad time to take profits
Meanwhile, ZIL appeared to have been trading inside a giant symmetrical triangle since August 2020, confirmed by at least two reactive highs on its upper downtrendline and two reactive lows on its lower uptrendline.
On March 31, Zilliqa token retested the upper trendline of the triangle (around $0.19) for a possible pullback move to the lower trendline (below $0.08). That equates to a price drop of at least 55% in the coming weekly sessions if the pattern plays out as expected.
Conversely, a decisive break above the confluence of resistance, including the upper trend line of the triangle and two Fibonacci levels, could see ZIL eye the $0.35 level below, coinciding with the 1.618 Fibonacci line. .
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