ZIL's Bullish Momentum: Can Zilliqa Breakout to $0.0065?

Zilliqa (ZIL) has long been a project of intrigue in the blockchain space, balancing ambitious technical innovation with the volatility of the broader crypto market. As of December 2025, the token is trading near $0.0058, with a critical price target of $0.0065 looming as a focal point for traders and investors. This article examines whether ZIL's technical and on-chain indicators signal a short-term rally to $0.0065, leveraging data from recent analyses and market dynamics.

Technical Indicators: A Bearish Base with Reversal Potential

ZIL's price action in late 2025 has been characterized by a descending channel pattern on the 1-hour timeframe, with the price nearing the lower boundary at $0.00470-a level that has historically acted as a support floor. The Relative Strength Index (RSI) is currently near oversold territory, suggesting a potential rebound could be imminent. Additionally, the Fear & Greed Index for ZIL is at an extreme fear level (25), a condition often followed by a bullish reversal in market sentiment.

Key Fibonacci retracement levels also provide context. ZIL is consolidating between the 38.2% and 23.6% levels at $0.01121 and $0.01209, respectively, though these are above the current price. If ZIL manages to hold above $0.00470, a retest of the channel's upper boundary could follow, potentially pushing the price toward $0.0065. The 100-day Exponential Moving Average (EMA) at $0.0065 is another critical resistance level, with technical indicators like the MACD showing a bullish crossover.

On-Chain Metrics: Accumulation and Liquidity Signals

On-chain data reveals mixed signals. ZIL's 24-hour trading volume of $254,138.54 indicates low liquidity, but recent trends show rising open interest (OI) in derivatives markets. As of early January 2026, ZIL futures OI reached $13.48 million, the highest since October 11, signaling increased capital inflows. The OI-Weighted Funding Rate turned positive at 0.0059%, suggesting long positions are dominating over shorts-a bullish sign for near-term price action.

Wallet distribution remains decentralized, with no single address holding a significant portion of the 19.5 billion circulating tokens. This reduces the risk of market manipulation but also highlights the need for broader adoption to drive demand. Exchange inflows have shown signs of accumulation, particularly as ZIL's price nears key support levels. Santiment data reveals a surge in aggregate trading volume to $92.59 million in late December 2025, the highest since July, indicating renewed interest from traders.

Zilliqa 2.0 and EVM Compatibility: A Catalyst for Growth

Zilliqa's technological roadmap is a critical factor in its long-term potential. The Zilliqa 2.0 upgrade, which introduced Ethereum Virtual Machine (EVM) compatibility and a Proof-of-Stake (PoS) consensus, has enhanced the platform's appeal to Ethereum developers and institutional investors. Cross-chain interoperability and X-shards for modular scaling are also expected to bolster the ecosystem's utility. These upgrades could drive demand for ZIL, particularly if they attract enterprise use cases or DeFi projects.

The deflationary model, where transaction fees result in token burns, further supports price appreciation. With supply reduction mechanisms in place, ZIL's scarcity could increase over time, creating upward pressure on its value.

Risks and Bearish Pressures

Despite these positives, bearish indicators persist. Some analysts predict a further decline to $0.00470 before a recovery, while broader market conditions-such as macroeconomic headwinds and regulatory uncertainty-remain risks. ZIL's price is still over 97% below its all-time high of $0.2554, meaning significant market conditions or fundamental shifts would be required for a substantial rebound.

Conclusion: A Cautious Bull Case for $0.0065

ZIL's technical and on-chain indicators present a nuanced picture. While the current bearish bias is evident, the confluence of oversold RSI levels, rising OI, and EVM-driven adoption creates a plausible case for a short-term rally to $0.0065. If ZIL holds above $0.00470 and breaks through the 100-day EMA, the path to $0.0065 becomes more viable. However, investors must remain cautious, as the market's volatility and macroeconomic factors could derail this trajectory. For now, Zilliqa's technological upgrades and on-chain accumulation metrics offer a compelling narrative for those willing to bet on a rebound.