Zilliqa(ZIL) shows Dominance In The Market As It Spiked By 40%; Here’s The Reason
Zilliqa, which disrupted the whole crypto market back at the end of the March and beginning of April, surprised the market once again with a sudden 40% spike following the Fed’s rate hike.
Zilliqa’s unexpected move was not followed by any fundamental change or update in the coin’s network, nor any news related to the project. But there are a couple of market factors that might push ZIL further up.
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Relief in the market following a rate hike
While traders did not consider the rate hike as something bullish for such a volatile type of asset like cryptocurrencies, cryptocurrencies are doing good extremely as well as the Fed is tightening monetary policy. Bitcoin and Ethereum have gained from 5% to 10% of their values, while Zil is bearing all of them with a 40% pump.
The why behind such a powerful price spike has nothing to do with the company belief of traders In Zil. Instead, the primary driver for the rally is the extreme volatility of the asset, which has previously gained around 400% in a matter of days.
Zilliqa becomes oversold
The only technical explanation behind such a strong price could be tied to the fact that ZIL was one of the most actively sold cryptocurrencies on the market after a 400% rally. According to the Relative Strength Index on the daily chart, ZIL reached the “oversold” zone right before the 40% pump.
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From the history, the asset bounced off the RSI’s oversold and overbought ranges every time that the values of the indicator dropped below or reached 30. At Writer’s time, Zil is trading at $0.09 and trying to break through the 50-day exponential moving average, which would set up the coin for another short- or mid-term rally.
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