The cryptocurrency market is no stranger to volatility, but recent developments have placed Zilliqa (ZIL) in the spotlight for all the wrong reasons. Over the past 24 hours, ZIL’s price has taken a sharp dip, trading at $0.004822—a decrease of 3.6%, which outpaces the general market downturn of 0.9%. This marks the continuation of a seven-day slide, with prices dropping about 7.75% during this time. So, what’s causing this bearish trend?
Exchange Delistings: A Major Cause of Decline
One significant factor contributing to Zilliqa’s recent price erosion is the delisting of trading pairs on major crypto exchanges. On January 23, 2026, Binance, one of the largest cryptocurrency exchanges globally, removed the ZIL/BTC spot trading pair as part of its market quality optimization efforts. This follows an earlier action in June 2025, when the exchange discontinued the ZIL/BTC margin pair.
What does this mean for traders? Delistings tend to lower liquidity and reduce arbitrage opportunities, which can push traders to sell off their assets. The reduction in available trading pairs, particularly BTC and ETH pairs, has led ZIL traders to rely heavily on USD-stable trading pairs like ZIL/USDT for liquidity. Unless existing liquidity consolidates effectively, Zilliqa could see further fragmentation in its trading volumes.
Circulating Supply and Inflation Concerns
Another issue affecting Zilliqa is the increase in its circulating supply. Upbit, a leading crypto exchange, announced that 443,195,861 ZIL tokens had been added to circulation in Q1 2025, bringing the total supply from approximately 19.905 billion to 20.349 billion—an increase of 2.2%. This uptick reflects factors like staking rewards, inflation in the protocol, and token unlocks for team allocations.
An expanding supply can dilute the token’s value if there isn’t a corresponding rise in demand. Supply-side pressure, particularly during bearish market cycles, often compounds market negativity, leading to further price drops.
Technical Analysis Indicates Bearish Momentum
The technical indicators for ZIL paint a bearish picture in the short term. ZIL is currently trading below all key exponential moving averages (EMAs) on the daily chart. Its 7-day simple moving average (SMA) is $0.00497, and the 30-day SMA sits at $0.00519, both of which are above the current price.
Moreover, the Relative Strength Index (RSI) is hovering near oversold conditions at 38.37, further supporting the case for continued bearish sentiment. MACD indicators also show negative momentum, with a histogram reading of -0.000095. However, these oversold conditions may trigger short-term consolidation before any significant move occurs.
Key Support and Resistance Levels
Looking at support and resistance levels, the nearest support lies at $0.0045846—this could act as a crucial floor if bearish sentiment persists. On the upside, traders are eyeing $0.00669 as the next significant resistance level. A breakout above this point could potentially trigger a bullish reversal.
Meanwhile, trading volume will serve as a key metric to watch. Sustained sell-offs could signal prolonged weakness, while a stabilization of volumes may indicate that the worst is over for Zilliqa in the near term.
eToro: A Solution for Diversified Crypto Trading
If you’re navigating the turbulent crypto landscape, platforms like eToro can be a helpful resource. eToro allows users to access a wide range of cryptocurrencies, including Bitcoin, Ethereum, and altcoins like Zilliqa. With features like social trading, users can even mimic the strategies of top-performing traders. Always remember to do your own research and understand the risks before diving into crypto investments.
What’s Next for Zilliqa?
While the immediate forecast for Zilliqa looks bearish, the situation is not without hope. Consolidation at current levels, or better management of liquidity and supply dynamics, could help ZIL regain its footing. Until then, vigilance remains key. Investors and traders should closely monitor market trends, liquidity changes, and any updates from exchanges or Zilliqa’s development team.
