Zcash (ZEC) Price Threatened by Correction Despite Recent Rally

Zcash
(ZEC),
the
decentralized
cryptocurrency
created
to
improve
privacy
in
the
blockchain
sector,
has
seen
its
price
increase
by
a
staggering
90%
in
the
last
30
days. 

This
surge
makes
ZEC
one
of
the
top
three
performing
altcoins.
Trading
at
$41.36,
this
analysis
explains
why
the
coin
may
not
be
able
to
sustain
its
momentum.

The
Storms
Are
Gathering
Over
Zcash
Stellar
Rally

On
July
12,
ZEC’s
price
was
around
$23.81,
meaning
the
current
price
is
almost
double
the
value
as
of
then.
However,
that
is
not
the
only
part
that
has
changed.

According
to
CoinGecko,
the
market
cap
has
also
substantially
increased.
On
the
same
day,
the
cryptocurrency
traded
around
the
aforementioned
price;
Zcash’s
market
cap
was
$360.68
million.

For
context,
the
market
cap
is
a
product
of
price
and
circulating
supply.
Even
though
the
project’s
maximum
supply
is
21
million
— 
the
same
as
Bitcoin
(BTC),
only
15.11
million
are
in
circulation.
At
press
time,
the
market
capitalization
had
increased
to
$625.72
million,
indicating
that
the
price
increase
was
crucial
to
this
significant
jump.

Read
more: Top
7
Privacy
Coins
in
2024

Despite
this
increase,
ZEC’s
volume
has
taken
the
other
route.
On
August
10,
Zcash’s
volume
was
over
$145
million,
suggesting
that
there
was
a
lot
of
interest
in
the
cryptocurrency.
But
as
of
this
writing,
the
metric
has
fallen
by
44.99% 
to
79.66
million.

Typically,
rising
volume
alongside
rising
price
is
a
bullish
sign,
suggesting
that
there
is
more
buying
power
than
selling. 
Conversely,
when
volume
decreases
in
this
situation,
it
implies
that
bulls
are
losing
dominance,
and
the
crypto
price
involved
risks
shedding
some
of
its
value.
Therefore,
if
the
volume
continues
to
fall,
ZEC’s
price
could
fall
below
$41
in
the
short
term.

ZEC
Price
Prediction:
Gains
Days
Over,
Retracement
Next

ZEC’s
notable
uptrend
began
in
July.
During
that
period,
the
coin
rose
from
less
than
$18
to
hit
$34.75
on
August
3.
Moments
after
this,
the
price
faced
rejection,
dropping
to
a
swing
low
of 
$25.43.

However,
supported
by
increasing
bullish
momentum,
the
coin
reached
a
peak
of
$42.97.
Meanwhile,
the
Relative
Strength
Index
(RSI)
is
77.02
at
press
time.
The
RSI
is
a
technical
indicator
that
measures
the
magnitude
of
speed
and
price
changes
to
determine
momentum.

It
also
tells
when
a
cryptocurrency
is
overbought
or
oversold.
Readings
at
70.00
or
above
mean
a
coin
is
overbought,
while
those
at
30.00
are
oversold.
When
oversold,
the
price
of
a
crypto
can
reverse
to
the
upside.

Therefore,
in
ZEC’s
case,
a
retracement
could
be
next.
Using
the
Fibonacci
retracement
levels
— 
an
indicator
helpful
in
identifying
support
and
resistance, 
ZEC’s
price
could
drop
to
$37.18
in
the
short
term.

Read
more: Zcash
(ZEC)
Price
Prediction
2024/2025/2030

However,
a
bounce
from
this
level
may
halt
another
downturn.
Instead,
particularly
if
buying
pressure
increases,
ZEC
may
exceed
$42.97
and
probably
test
the
$44
region.