Zilliqa 2.0 attracts strong capital flow – ZIL price set to rise?

The price of Zilliqa (ZIL) continues to fluctuate significantly, mainly due to the instability of the overall market. This altcoin has struggled to maintain a stable upward trend, frequently swaying due to external factors.

However, the emergence of Zilliqa 2.0 is expected to be a major turning point, potentially creating a positive boost in both price and market sentiment.

Zilliqa opens a new chapter

The Chaikin Money Flow indicator (CMF) is currently surging, indicating a strong influx of money into Zilliqa. This increase is likely stemming from the launch of Zilliqa 2.0, attracting significant interest from investors and rekindling attention.

Zilliqa 2.0 is launched with full EVM support, allowing for easy deployment of Ethereum native applications. The new module design integrates a Proof-of-Stake consensus mechanism and cross-chain communication capabilities. In future updates, the platform will add smart accounts, zero knowledge technology (ZK)*, and privacy protection tools.

Alexander Zahnd, interim CEO of Zilliqa, shared that Zilliqa 2.0 will also attract large organizations:

"Zilliqa is now ready for enterprises and developer-friendly... We have rebuilt the core to ensure it is not only fast but also open, integratable, and suitable for practical applications," Zahnd said.

The excitement surrounding these improvements is likely contributing to the influx of investment into ZIL, as the community anticipates the scalability and practical applications of Zilliqa in the near future.

CMF of ZIL | Source: TradingViewIn the context of the overall market, the technical indicators of Zilliqa are showing signs of a possible trend reversal. The MACD indicator is recording a bullish crossover, which could be a signal for the start of a positive trend. If this upward momentum continues, Zilliqa could recover steadily, regaining previous losses.

However, to sustain a bullish trend, support from the entire crypto market is essential. If Bitcoin and other major altcoins continue to show strength, this could drive the price of Zilliqa higher. Conversely, any weakness in the overall market could limit Zilliqa's growth potential, causing the price to get stuck at key resistance levels.

ZIL's MACD | Source: TradingView## ZIL price has the potential to recover

Currently, ZIL is trading at $0.0105, just below the important resistance level at $0.0107. With the recent positive developments surrounding Zilliqa 2.0, this altcoin may be entering a recovery phase.

If the price successfully bounces back from this area thanks to the continued inflow of capital, Zilliqa could aim for higher price targets.

In a positive scenario, if Zilliqa surpasses and maintains the level of 0.0107 dollars as support, the price could rise to the region of 0.0115 dollars. Breaking through this resistance level will play a crucial role in strengthening the bullish momentum and opening up the possibility of reaching the next important milestones.

This could mark the beginning of a new uptrend, driven by positive sentiment surrounding the Zilliqa 2.0 upgrade.

ZIL price chart | Source: TradingViewHowever, if negative market conditions continue to overshadow the current optimistic sentiment, the price of ZIL may drop to $0.01. Falling to this price range would negate the bullish outlook, erase the recent recovery momentum, and push ZIL back into a consolidation phase.

Investors need to closely monitor market developments to assess whether the current upward momentum can be sustained.

*Zero-knowledge (ZK) refers to a type of protocol in which one party can prove to another party that a statement is true without revealing any information other than the validity of that statement.

Minh Anh