Zcash price has bounced off a trendline that’s been serving as key support since late September. With bullish technicals lining up, the token could be gearing up for a rally in the weeks ahead.
Summary
- Zcash price rallied by over 240% in October.
- Demand for privacy coins like ZEC has surged in recent months.
- Technical indicators are in favor of potential upside in the short-term.
According to data from crypto.news, Zcash (ZEC) rallied to a 4-year high of $304.4 on Oct. 21 before stabilizing at $256.4 last check on Friday, Oct. 24, afternoon Asian time. At this price, the token is up over 240% since the beginning of October and 560% above its lowest level in September.
Zcash price rally picked up this month after asset manager Grayscale announced plans to launch a new fund tracking Zcash, a move that market experts believe could eventually lead to the conversion into an ETF if investor demand picks up.
The rally has also been supported by strengthening fundamentals within the Zcash network. According to the Zcash Dashboard, the total value of shielded ZEC has climbed to a record 4.91 million tokens, worth over $1.26 billion. Shielded ZEC tokens now account for about 30% of the supply.
A higher shielded amount indicates that more people are using Zcash’s privacy features, which in turn suggests increased user adoption.
Zcash’s recent upswing has also lifted sentiment across the broader privacy coin sector. Peers like Railgun (RAIL), Dash (DASH), and Monero (XMR) have all seen notable gains over the past month, rising 157%, 100%, and 10% respectively.
Zcash price has rebounded above a key ascending trendline on the 4-hour chart that has acted as support since late September. Each time the token retested this level, it was typically followed by a sharp rally over the next few days, until profit-taking kicked in.
Momentum indicators like the MACD and RSI show that buying pressure has been gradually building, suggesting that control is starting to shift from sellers to buyers. Interestingly, while the MACD line is still below the signal line, the red histogram bars have been shortening, often a sign that bearish momentum is weakening.
Meanwhile, the RSI currently sits at 54 after climbing above the neutral 50 mark, another indication of growing bullish momentum without yet being in overbought territory.
Given these signals, there’s a strong chance the token could extend its upward move. If the trend continues, the next key level to watch will be the October high at $304.4.
A clear breakout above that resistance could pave the way for a move toward the psychological resistance level at $320. This target sits roughly 25% above the current price.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
