Key Points
- Zcash is having a bull run and has hit $600 for the first time since 2018.
- The market cap has increased by 18% to hit a whopping $10 billion.
- The token registered an over 1300% year-on-year increase in pricing.
- The token is continuing its rally amid the increased institutional interest in privacy tokens and high-profile endorsement from BitMEX co-founder, Arthur Hayes.
- The token reaching overbought territory and falling open interest rates cast doubts on the continuity of the rally.
Zcash is having a bull run yesterday and has hit $600 for the first time since 2018. The privacy token is outperforming the broader crypto market, and the price of the token has increased more than 60% in the past week. The market cap has increased by 18% to hit a whopping $10 billion. Moreover, the token registered an over 1300% year-on-year increase in pricing. The price surge has pushed Zcash to the top 20 crypto list. So far, Zcash’s all-time high was $5,941.80, reached on October 29, 2016.
The technical analysis shows both the market oscillators and moving averages sending strong buy signals. The current price surge is largely attributed to a shifting narrative regarding the privacy tokens.
Zcash Surges Amid the Growing Interest in Privacy Coin
Zcash is currently trading at around $560 level. The token is facing some pullbacks due to profit-taking taking yet the bulls are positive due to increased institutional interest. The privacy tokens are gaining traction, especially among institutional investors. Zcash was launched back in 2016, and the token leverages zero-knowledge encryption for private peer-to-peer payments.
Zcash offers both transparent and shielded transactions. The transparent transactions work in the same way as Bitcoin. Shielded transactions, on the other hand, offer anonymity unattainable in other blockchain networks. Zcash uses zero-knowledge succinct non-interactive arguments of knowledge, or zk-SNARKs technology, to ensure anonymity. In such cases, only the occurrence of the transaction is recorded in the public ledger without revealing the addresses of the sender and receiver. The rise of Zcash shows growing emphasis on data sovereignty and transaction privacy.
Zcash also received high-profile endorsements recently. The BitMEX co-founder, Arthur Hayes, posted on X, revealing that $ZEC is the 2nd largest holding in at MaelstromFund portfolio behind $BTC. The legendary investor famous for moving the markets with his comments had earlier predicted that the token would reach $10,000, triggering retailer FOMO back in October. The Zcash surge, outperforming the broader crypto market, has added renewed interest in the altcoins. The overall crypto market has been reeling under pressure since the record market crash in October.
The Bottom Line: Will Zcash be Able to Sustain the Rally?
The million-dollar question now is whether Zcash will be able to sustain the rally. The 14-day Relative Strength Index (RSI) stands at 80. The value suggests that the token has reached the overbought territory. This confirms the bullish trend, yet it also suggests that a trend reversal may be around the corner. The moving averages are sending strong buy signals. Nevertheless, the extremely high volatility of 32.13% remains a cause of concern. Moreover, the open interest rate also fell. These developments cast doubts on the continuity of the rally.
Nonetheless, it’s worth noting that Zcash has a great appeal as a privacy token, and its 4-year halving cycles make it more attractive for investors. The token definitely has long-term potential. As for short-term, the investors are advised to take a cautious approach due to the dynamic nature of the crypto market.