It’s a bearish end of the week for crypto, as prices remain subdued. However, in the last 12-hours, Zcash (ZEC) has gained bullish momentum that has seen it edge higher by about 4% to test a high of $61.08. However, it has failed to break above a key resistance level at $60.29 on the 200-day moving average.
This could mean that the overall trajectory for Zcash is bearish. The possibility of a further drop is accentuated by the fact that bitcoin (BTC) is still bearish, and it’s still far from key support, which could possibly be at $3200. Besides, it’s a weekend, which means that any potential bullish momentum might be subdued by the decline in volumes that usually happens on weekends. If it drops, Zcash (ZEC) could possibly test $53.39 within the day.
In spite of this bearish sentiment,
the long-term prospects for Zcash look good. For starters, like all other
altcoins, it trades in the same direction as Bitcoin (BTC), but gains faster in
a bull market. This means that the moment Bitcoin (BTC) turns bullish, altcoins
will start to gain, and Zcash will turn bullish too.
There are a number of
factors that support the possibility of Bitcoin (BTC) gaining bullish momentum
this year. The first one is that it is trading along a key long term support on
the weekly 200-day moving average. If this support holds, Bitcoin could consolidate
around the $3200 – $3700 region before some major influx of capital gives it a
bullish push. Such a push would come from something like approval of Bitcoin
ETFs. For instance, if the Bakkt ETF starts trading, it would have a positive
impact on the value of Bitcoin (BTC). That’s because it will be physically settled. Such
a positive push to the value of Bitcoin (BTC) could uplift altcoins, and Zcash (ZEC)
has what it takes to be among the biggest altcoin gainers.
One the factors that support
it is its dominance in the privacy market. Zcash (ZEC) and Monero (XMR) are the
two most dominant privacy coins in the market. Zcash (ZEC) privacy features are
so good that other cryptos are using its Zk-Snarks technology as a second layer
privacy solution. It is even floated as a short-term scaling solution for
Ethereum (ETH). With such strengths, Zcash (ZEC) has the intrinsic value to see
it rise exponentially in value, in the event that Bitcoin (BTC) turns bullish.
Then there is the element of
its supply. Like Bitcoin (BTC), Zcash (ZEC) has a very low coin supply, which is
a plus for a coin that has such a powerful use case. It means that in a bull
market, money would be chasing a very limited number of coins. On the strength of its low coin supply, price
would rise faster since demand would be chasing a limited number of coins. This
could see Zcash (ZEC) easily test highs of $1000 or even more. It’s a crypto to
keep an eye on in the long run.