Over the past 11 months, the crypto trend has been downwards. However, all through this bearish markets, investors have been very optimistic. Most people have either held on to their coins or have been buying in the hope that the market correction was short-term. That’s why “buy the dip” has been a very popular phrase in crypto this year. However, in the last 2 weeks, this sentiment has changed. There is an increased sense of hopelessness in crypto. On most forums, the sense of optimism that most people had about crypto is dying down.
Zilliqa (ZIL) is no exemption to this changing sentiment. Zilliqa has dropped not just in price but in market cap as well. It has dropped from 25th and is now oscillating between 39th and 42nd. The price has taken such a big hit that it is now hanging precariously above 1 cent. That’s why investors are beginning to feel a sense of hopelessness. A feeling that it could even get worse than it is now.
For smart money, this is the best time to accumulate. That’s because, at the point of total hopelessness, investors tend to give up on all rationality and make their decisions based on their emotions. The prevailing emotion at this point is fear. Just like in a bull market, when people buy at the top out of greed, in a bear market, people sell at the very bottom out of fear.
Most people selling Zilliqa at this point are doing so out of the fear that it could break below a cent. While that is a possibility considering that we are in a bear market, chances are that at this point, with all the developments that Zilliqa has made, it is worth more than its current market price. It’s only valued so lowly due to fear, not just in the Zilliqa community, but in the entire crypto market.
But how can one be sure that Zilliqa is undervalued at current prices? One aspect that gives Zilliqa (ZIL) a higher value than in the past is Sharding. Zilliqa has got it right on Sharding, and this breakthrough gives it an edge in the platform blockchains market. Through this development, Zilliqa is able to hit transaction speeds of over 2000 TPS, which is way higher than Ethereum or any of the other Zilliqa competitors in the Dapps market.
This is a unique market advantage that places Zilliqa in a good position, in an increasingly competitive marketplace. Zilliqa is also on track to going live on its mainnet. This will open up the way for the adoption of Zilliqa in the development of all kinds of decentralized applications. These advanced technical aspects to Zilliqa give it significant value in spite of the recent market drop.
In essence, this is the perfect time for smart money to get into the market. Can Zilliqa go lower? Yes. However, the chances of a downside break are much lower than a resurgence of the bulls. Today, Zilliqa has pumped a little bit. It could be a sign of smart money taking positions in this crypto. The risk-reward ratio is getting better.