- Zcash price has formed a cup-and-handle pattern, pointing to more upside this year.
- The futures open interest has jumped to a record high, a sign of robust demand.
- The volume in the spot market has continued soaring this year.
Zcash price has soared to its highest level since November last year and is now slowly forming a highly bullish cup-and-handle pattern. The ZEC token has soared to $600, up sharply from the year-to-date low of $198.
Zcash Price Forms the Cup and Handle Pattern
The daily timeframe chart reveals that the ZEC price formed a strong bottom at $198, its lowest level in February and March this year. A closer look shows that the coin crossed the important resistance level at $552, its highest level in December last year.
Moving above that level was important as it was the upper side of the cup-and-handle pattern. A C&H is one of the most common bullish reversal signs in technical analysis.
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This cup has a depth of about $354 ($552 minus $198). Adding this amount to the cup’s upper side gives it a target of $906. Such a move will be confirmed if it moves above the key resistance at $742, its highest point last year. Such a move will be a 56% surge from the current level.
At the same time, the ZEC price formed a golden cross pattern as the 50-day and 200-day moving averages crossed each other on April 14 this year. It has also remained above the Supertrend indicator, while top oscillators such as the MACD and Stochastic Oscillator have continued to rise this year.
ZEC Token Demand Has Soared This Month
Third-party data shows that the Zcash price has seen strong demand in the past few months. Data shows that its 24-hour volume has soared to over $706 million, making it one of the most heavily traded coins in the market.
According to CoinGlass, futures open interest jumped to over $1.43 billion, up from the year-to-date low of $293 million. It has reached its highest level on record, a sign that demand is in an uptrend.
Zcash has simply become the most popular privacy-focused token. It has passed Monero, which had a 24-hour volume of $94 million and a market capitalization of over $7.5 billion.
Data also shows that the number of shielded ZEC tokens has continued to rise, albeit gradually. They jumped to 5.1 million tokens, up sharply from last year’s low of 3.8 million tokens. This is a sign that people are using the tokens in transactions.
For starters, Zcash uses a unique architecture to protect transaction privacy, leveraging zero-knowledge SNARKs to ensure the privacy of shielded addresses. Shielded addresses allow private transactions, while transparent addresses make transactions publicly visible on the chain.
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