Zilliqa (ZIL) extended its strong rally on Tuesday, surging over 20% to the $0.006 area, following an impressive 34% gain in the previous session. The sharp move comes as optimism builds ahead of the Cancun EVM upgrade, scheduled to go live later this week, significantly improving market sentiment even as the broader crypto market remains under pressure.
Buying interest in ZIL has stayed elevated, supported by rising trading liquidity and positive signals from derivatives markets, suggesting that the rally is being driven by fresh capital rather than short-term speculation alone.
Cancun EVM Upgrade Becomes a Key Catalyst
The upcoming Cancun-compatible Ethereum Virtual Machine (EVM) upgrade is set to be activated on Zilliqa’s mainnet via a hard fork this Thursday. According to Zilliqa’s official announcement, the upgrade is expected to enhance network communication speed and provide more granular control for developers, improving overall developer experience and scalability.
Adding to the positive narrative, Zilliqa recently confirmed that the Liechtenstein Trust Integrity Network (LTIN) will join as the first government-backed institutional validator on the network. This development strengthens Zilliqa’s regulatory alignment and long-term credibility, further reinforcing bullish sentiment.
As a result, ZIL has climbed more than 60% since the start of the week, standing out as one of the few altcoins posting strong gains amid a risk-averse market environment.
On-Chain and Derivatives Data Support the Uptrend
On-chain data from Santiment shows that total ecosystem transaction volume across Zilliqa applications jumped to $278.07 million on Tuesday, marking the highest level since December 2024. This surge reflects growing user activity and improved liquidity across the network.
Meanwhile, derivatives data from CoinGlass reveals that open interest (OI) in ZIL futures surged to $47.76 million, up sharply from $5.72 million just one day earlier, also reaching its highest level since December 9, 2024. The rapid rise in OI suggests new positions entering the market, potentially amplifying price momentum in the near term.
Zilliqa Price Outlook: Bulls in Control, But Caution Needed
From a technical perspective, ZIL began the week with a decisive breakout, closing firmly above the 50-day EMA near $0.005. The bullish momentum carried into Tuesday, pushing price above the 100-day EMA around $0.006.
If buying pressure remains dominant, ZIL could extend its recovery toward the 200-day EMA near $0.007, which now stands as the next major resistance level.
Momentum indicators support the bullish case:
RSI (Daily): ~67, well above the neutral 50 level, signaling strong upside momentum.
MACD: Confirmed a bullish crossover on Tuesday, reinforcing short-term positive bias.
However, traders should remain cautious. A wave of profit-taking could trigger a pullback toward the $0.005 zone, where the 50-day EMA now acts as key dynamic support.
📌 Trade Scenarios (For Reference Only)
Bullish Setup (Buy the Pullback / Breakout)
Buy Zone: $0.0050 – $0.0053 (EMA50 support)
Alternative Buy: Break and daily close above $0.0063
Take Profit 1: $0.0069 – $0.0070
Take Profit 2: $0.0082
Stop Loss: $0.0046
Bearish / Hedge Setup
Sell Zone: $0.0070 – $0.0073 (EMA200 resistance)
Take Profit: $0.0055
Stop Loss: $0.0078
Zilliqa is clearly outperforming the market — but the real question is whether this rally can sustain once the Cancun upgrade goes live, or if it becomes a classic “buy the rumor, sell the news” scenario.
💬 What’s your take on ZIL at these levels?
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