Zcash (ZEC) Makes a Strong Comeback: Is This 21% Rally the Beginning of a Long-Term Uptrend?

Zcash (ZEC) Makes a Strong Comeback: Is This 21% Rally the Beginning of a Long-Term Uptrend?

Zcash (ZEC) has experienced a significant price rally, climbing 21% and reaching a peak of $371.38 after starting the day at $293.73. The market cap for Zcash has risen to $5.86 billion, with an impressive daily trading volume increase of over 249%. Technical indicators suggest that this bullish momentum may continue, but caution is advised as the asset approaches overbought territory.

Key Takeaways

Zcash (ZEC) has surged 21%, reaching a high of $371.38.
The asset's market cap is now $5.86 billion, with a daily trading volume exceeding $1.59 billion.
Technical indicators like MACD and CMF suggest bullish momentum, while RSI indicates overbought conditions.
Immediate support for Zcash may be tested at $355, with bearish pressures potentially leading to a price drop below $353.

Analyzing Zcash's Recent Price Movement

Zcash began today trading at a low of $293.73, and a recent bullish trend has propelled it to a high of $371.38. This price movement suggests that Zcash has likely tested and surpassed resistance levels between $295 and $369, confirming an upward trend. Currently, Zcash trades around $357.31.

In addition, Zcash's market capitalization has reached $5.86 billion, bolstered by a staggering 249% increase in daily trading volume, now amounting to $1.59 billion. According to Coinglass data, approximately $11.04 million in Zcash was liquidated within the last 24 hours.

Renewed Bullish Momentum for Zcash

Technical analysis indicates that Zcash's Moving Average Convergence Divergence (MACD) line is above the signal line, suggesting that the momentum is shifting upwards, which may lead to further price increases. Additionally, ZEC’s Chaikin Money Flow (CMF) at 0.24 signifies strong buying pressure in the market, indicating that more money is flowing into the asset as investors accumulate rather than sell.

ZEC Chart (Source: TradingView)

The ZEC/USDT trading pair looks optimistic, with potential resistance around $359. A stronger bullish correction could trigger a golden cross, pushing the asset’s price above $361. However, should the current momentum reverse, Zcash may test support around $355, with further bearish pressure possibly resulting in a drop below $353.

Moreover, Zcash’s daily Relative Strength Index (RSI) stands at 68.18, indicating it's nearing overbought conditions. While this reflects strong bullish momentum, a price correction is also possible. Zcash’s Bull Bear Power (BBP) reading of 87.05 further supports bullish sentiment, as higher values indicate increasing buying pressure.

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