Zcash Price continued its strong rally this week as the crypto market rally gained steam. ZEC token jumped for four consecutive days as it slowly neared the year-to-date high of $297.
The Zcash price has jumped amid rising demand from institutional investors who have invested in the recently launched Grayscale ZEC Fund despite its high expense ratio of 2.50% expense ratio. Data on its website shows that the fund has attracted over $85 million in assets, a figure that continues to rise.
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Zcash price has also jumped as more investors have continued using its shielded addresses in their transactions. Data shows that the shielded supply has jumped to over 4.6 million, a figure that has recently gone parabolic. The number of all transactions on Zcash is also soaring, while the mining difficulty has jumped to the highest level since November last year.
Zcash has emerged as one of the fastest-growing privacy coins in the crypto industry. It does that by offering two transaction types that users can select from. Shielded transactions are encrypted, and all details are hidden from the public, while the others resemble those of Bitcoin in that they can be tracked as information is listed on the blockchain.
The ZEC price has also continued rising, as the futures have popped to over $236 million, its highest level in over a week.
Zcash Price Technical Analysis
The daily timeframe chart shows that the Wyckoff Theory has played a key role in the recent surge. This theory explains the stages that an asset goes through, with the first one being accumulation.
The accumulation phase is characterized by low volume and volatility. It is then followed by the markup phase, where demand soars. FOMO typically happens in this stage.
It has now moved to the distribution phase, which consists of several large swings and is followed by the markdown, in which the asset drops.
The Zcash price is now forming a double-top pattern at $297 and a neckline at $185. This pattern often leads to a strong bearish breakdown. Further evidence of this pattern is that the Percentage Price Oscillator has made a bearish crossover pattern.
Therefore, the most likely scenario is for the Zcash price to resume the downtrend and possibly retest the neckline at $185. A move below that level will point to more downside, potentially to the 100-day Exponential Moving Average at $35.
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