Zcash: Could ZEC Reach $875? Here's What Traders Are Saying

Zcash (ZEC) has experienced a significant price surge, largely driven by anticipation around the upcoming shielded ZEC purchases via the Zashi Wallet. This article breaks down what this activity means for the cryptocurrency's future, the current market dynamics, and key trading signals.

Key Takeaways

The excitement surrounding shielded ZEC purchases through the Zashi Wallet is fueling aggressive trading in both spot and futures markets.
ZEC must surpass the $750 mark to aim for $875; if not, it might find a support level around $495.
Following a dip to $423, ZEC has closed higher for three consecutive days, recently trading at $673, a 30.72% increase, with a trading volume rise of 82%.
Zcash’s current market cap has increased by 35%, positioning it as the 12th-largest cryptocurrency.

Zcash Surges 30%, Amid Shielded ZEC Purchases Hype

Speculation Driven by Shielded Zcash Transactions

In the midst of a volatile cryptocurrency market, Zcash has shown resilience, mainly due to the anticipated launch of shielded transactions on the Zashi Wallet. Starting next week, users will have the ability to privately exchange other cryptocurrencies for shielded ZEC using this new feature, which is powered by Near Intents and eagerly awaited within the community.

ZEC swaps Source: Josh Swihart

This innovation allows investors to swap assets like Bitcoin (BTC) for shielded ZEC at the same nominal value. While this development has garnered enthusiasm, it has also faced scrutiny from industry observers, including ZachXBT, who raised concerns about potential privacy risks associated with using Zcash's transparent addresses for refunds.

Strong Buyer Momentum

Zcash has demonstrated positive momentum with three consecutive days showing a favorable Buy Sell Delta. In the last 24 hours alone, the altcoin noted 1.6 million in buy volume against 1.4 million in sell volume.

ZEC buy sell volume Source: Coinalyze

This led to a positive Buy Sell Delta of 200K, signifying aggressive accumulation in the spot market.

Futures Market Enthusiasm

With indications of a market rebound, investors have flocked to the futures market, eager to make strategic placements. The last week saw a pronounced buyer dominance in this sector, reflected by the Futures Taker CVD metric remaining consistently positive.

Zcash futures taker CVD Source: CryptoQuant

Additionally, derivatives volume skyrocketed by 104.92% to $9.4 billion, while open interest surged by 43.93% to $1.28 billion at the time of reporting. This simultaneous increase in metrics indicates a growing interest and infusion of capital into the futures market. The Long Short Ratio also climbed to 1.04, suggesting most buyers are adopting long positions.

Zcash Derivatives Source: CoinGlass

The data suggests a majority of the market participants are optimistic, anticipating further price increases soon.

What Lies Ahead for ZEC?

Zcash has staged a comeback, fueled by speculation about upcoming shielded ZEC transactions next week. This recovery has boosted demand for the altcoin across spot and futures markets.

Currently, ZEC's Stochastic Momentum Index (SMI) has crossed into bullish territory, now sitting at 6.6, indicating strong upward momentum.

Zec SMI Source: TradingView

Such crossover generally signals a rising buyer influence and potential for price elevations. Should the demand continue, ZEC has the potential to break through the $750 resistance, aiming for the $875 mark. Conversely, if this breakout fails, ZEC may find support near $495, aligning with its 18-day moving average.