Zcash stays Strong Amid Crypto Market Turmoil
Zcash (ZEC) has held its ground near its recent peak, despite the broader cryptocurrency market’s downturn. The coin’s price remained around $274, slightly down from its high of $280 this week.
The resilience of Zcash comes after a short squeeze sparked by Grayscale’s plans for a Zcash fund. This move, along with a surge in privacy coins like Dash and Monero, has bolstered ZEC’s value. Though, the market’s bullish sentiment might potentially be short-lived.
Analysts warn that the coin could soon reverse its gains. Several factors point too this possibility. First, the funding rate has hit an all-time high, indicating that many traders are using leverage to go long. this could lead to a market correction if too many traders are on the same side.
Additionally, technical indicators show that Zcash is overbought. The Relative Strength Index is at 82, and the Stochastic Oscillator is over 89. These levels suggest that the coin could experience a price drop soon.
According to the Wyckoff Theory, zcash is now in the markup phase. This phase is typically followed by distribution and markdown, where investors sell their assets to book profits. If this happens, ZEC could crash to the critical support at $100, a 60% drop from its current level.
While Zcash has shown resilience, investors should be cautious. The market’s current euphoria could lead to a correction, sending ZEC back toward $100.
