Zcash (ZEC) has seen an explosive price surge, outperforming major cryptocurrencies as investors increasingly seek anonymity amidst tightening global financial regulations.
The privacy-focused digital coin closed at USD $336.9, marking a 25.48% climb in a single 24-hour period. Its monthly return soared by an impressive 494.46%.
This significant rally pushed Zcash’s market capitalization to $5.48 billion, with its daily trading volume reaching $1.23 billion. This volume is more than 90% higher than its 30-day average, signaling strong investor engagement.
Analysts attribute the renewed interest to growing concerns over central bank digital currencies (CBDCs) and broader regulatory scrutiny. Investors are reportedly pivoting towards digital assets offering censorship resistance and enhanced privacy features.
On-chain data highlights a concrete shift towards privacy adoption within the Zcash network. Over 60 days, 1 million ZEC were added to its shielded pool, reducing active liquidity by a third. This increased privacy usage coincided with ZEC’s price climbing from USD $34 to over USD $270.
The derivatives market also reflects this bullish sentiment. Perpetual contracts show positive funding rates, indicating a dominance of long positions. Open interest in futures expanded by 15% to USD $500 million, reinforcing market conviction.
Social media discussions, particularly on X, have largely been positive. Posts emphasized ZEC’s role as a tool against surveillance, further contributing to the upward momentum.
Technical indicators also support the rally. ZEC broke through a resistance level at USD $290, consistent with a bullish flag pattern. The 7-day Simple Moving Average (SMA-7) at USD $263.35 confirms a short-term uptrend.
However, the Relative Strength Index (RSI) touched 75, suggesting Zcash is currently overbought. This could signal a potential pullback in the near term, with a psychological resistance level noted at USD $350.
Fundamentally, Zcash benefits from its scarcity, with 16.48 million ZEC circulating out of a total supply of 21 million. Daily transactions have increased by 20% to 50,000, and active holders grew by 15% in the last month.
The cryptocurrency’s utility in anonymous transactions and partnerships with major exchanges like Binance bolster its liquidity. Some analysts suggest Zcash is undervalued compared to peers, given its higher liquidity metrics.
While a bullish scenario targeting USD $400 is considered highly probable, volatility remains a key characteristic of the asset. Analysts suggest accumulating ZEC on dips below USD $310 but caution investors to prepare for potential corrections.