Arthur Hayes’ $10,000 ZEC Prediction Ignites Excitement Across Crypto, But Can Zcash Maintain the Momentum?

Zcash (ZEC) has seen a remarkable increase of over 750% in the last three months, with holders enjoying a gain of more than 20% in just the past 24 hours. This once-dormant privacy coin from cryptocurrency's early days has attracted attention since October, marking a resurgence after nearly nine years of relative inactivity following its 2016 launch.

Reigniting the Zcash Rally: Arthur Hayes' Bold Forecast

According to data from CoinGecko, ZEC has surged by 20.8% and is currently priced at $332.52. This upswing followed a recent tweet from Arthur Hayes, co-founder and former CEO of BitMEX, who confidently set a $10,000 price target for ZEC, the native token supporting the Zcash network.

Zcash (ZEC) Price Performance. Source: CoinGecko

Hayes’ influential commentary, known for its unconventional insights and market impacts, has revitalized interest in this altcoin, especially after the market downturn known as Black Friday failed to suppress ZEC’s appeal.

As analyst AB Kuai Dong noted, “After a prolonged silence, ZEC was suddenly championed by a notable investor from Silicon Valley, prompting a wave of excitement and participation that triggered a month-long FOMO (Fear of Missing Out) frenzy in the market.”

Although Zcash has experienced sporadic spikes over the years, it has often slipped into obscurity due to increased regulations and diminishing developer activity. In recent weeks, however, it has re-emerged on traders' watchlists—not just out of nostalgia.

Analysts are now drawing parallels between the ZEC rally and the early days of Bitcoin and Ethereum, citing several key factors that are coming together. “ZEC completely amazed me. It experienced a 755% jump over three months, approaching the $305 all-time high resistance. Factors like Grayscale launching a Zcash trust, the listing on Hyperliquid, an upcoming halving, and ongoing discussions surrounding BTC vs. Zcash have all contributed to this explosive momentum,” noted crypto analyst Lennaert Snyder.

Adding to this perspective, technical analyst Clifton FX highlighted a bullish ascending triangle pattern appearing on the 8-hour chart for ZEC, indicating that a breakout could lead to an additional price increase of 100% to 150%.

ZEC (Update): Ascending triangle Pattern formation in 8h Timeframe.

Diverging Views on Zcash: Skepticism Amid Excitement

Despite the enthusiasm, some analysts remain cautious. Ignas DeFi, a well-known DeFi expert, described Zcash as a compelling example of how narratives can quickly gain traction. He cautioned that many investors maybe inadvertently set themselves up as exit liquidity during pump-and-dump scenarios.

Additionally, Ignas pointed out a self-reinforcing cycle where traders, seeing ZEC-related discussions on platforms like X (formerly Twitter), rush to buy to avoid missing out, thus amplifying the excitement and contributing to the hype.

Mert Helius, CEO of Helius Labs, expressed his skepticism as well, highlighting ZEC’s valuation when compared to larger-cap altcoins. “Many believe it’s too late to buy a coin simply because it has increased in price. However, it is essential to evaluate the coin's value—overvaluation or undervaluation is the crucial factor.”

Market Conditions for Zcash

Zcash Price Forecast: Key Levels for Investors to Observe

Currently, with ZEC trading at $333.77, traders should keep a close eye on the $281.35 support level, which acts as a mean threshold within a supply zone between $270.95 and $292.22. Historically, each time the price has approached this area, it faced significant selling pressure that curtailed further increases, at least until the recent breakout.

From a technical perspective, ZEC appears to be moving within an ascending parallel channel. While the price remains in this pattern, it is poised for potential gains. As momentum indicated by the RSI (Relative Strength Index) continues to rise, Zcash could see further upward movement, possibly reaching $360—a 6% increase from current levels.

However, if the resistance at the upper boundary of this ascending channel holds, ZEC may experience a downturn. A drop below the midline at $298.35 could worsen the situation, as support from the 9-day Simple Moving Average may become insufficient.

For the price to confirm a correction, a significant close below the $281.35 mark would be critical. Should this happen, selling pressure could increase, driving ZEC down to $240 and potentially breaking the bullish technical structure.

In a worst-case scenario, ZEC might dip below the crucial psychological level of $200, opening the door for further losses. With the RSI currently at 79, concerns are mounting that Zcash may soon face a correction due to buyer exhaustion.

Key Takeaways:

Zcash (ZEC) has surged over 750% in three months, recently boosted by Arthur Hayes' $10,000 price target.
While many traders are excited, concerns regarding market dynamics and the sustainability of ZEC's price rally remain.
Investors should monitor key price levels, especially the $281.35 support and potential resistance above.
Technical indicators suggest there could be further upward movement, but caution is urged due to overbought conditions.