- 1bln of ZIL staked during the first few hours after the rollout of Zilliqa’s non-custodial staking platform
- A convergence within a triangle is almost done, signalling a breakout is likely to happen in the coming days
- The first target on the upside becomes $0.0228 before the buyers can target $0.2750
Zilliqa (ZIL) price has spent the past 5 months in a triangle consolidation pattern. As two converging trend lines have almost touched now, the digital asset is about to break out. Here, we take a closer look at where ZIL is likely to trade in November.
Fundamental analysis: 1 billion ZIL staked
Last week, Zilliqa announced that one billion of ZIL was staked during the first few hours after the official rollout of Zilliqa’s non-custodial staking platform.
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Zilliqa is a powerful blockchain platform that serves businesses and next-gen decentralized applications. A few months ago, it announced partnerships with KuCoin and Binance to provide staking services, however, owners of ZIL can now stake directly into the smart contract, eliminating the need for a third party.
The staking platform will allow token holders to engage in governance voting and earn rewards.
The launch has brought a new token to the platform, called governance ZILs, or gZIL, which participants can earn together with other staking rewards in ZIL. If 80% of the supply in circulation is staked, Zilliqa hopes to generate returns of about 6%.
1 gZIL will be supplied for every 1,000 $ZIL earned as staking rewards. Furthermore, there’s also a safe staking portal Zillion that serves to facilitate the process by letting third-party wallets connect.
A decentralized exchange and token swapping protocol Zilswap was also rolled out three weeks ago, which will allow re-staking that participants earned earlier, as well as pooling ZIL, to produce liquidity for yield farming rewards.
“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,” said President and Chief Scientific Officer of Zilliqa, Amrit Kumar.
However, the price of ZIL plunged by 4.5% in the first 24 hours after the launch and is 90% lower compared to its all-time peak reached in May 2018.
Technical analysis: Consolidation taking place
A series of the higher lows and lower highs has been recorded on the ZIL/USD daily chart, which signals that a consolidation is taking place. The convergence is almost complete, signalling that a breakout is likely to happen in the coming few days.
Given that this is a symmetrical triangle, we don’t have many signs about the future path of the price action. In this case, ZIL traders are advised to wait for a breakout to happen before committing to a trade.
The first target on the upside becomes $0.0228 before the buyers can target $0.2750. Alternatively, targets on the downside are $0.01650 and $0.01350.
Summary
Zilliqa introduced a non-custodial staking platform on its mainnet and one billion ZIL was staked just a few hours after the launch. On the other hand, an imminent breakout in ZIL price action is expected to take place soon.
