Key takeaways
Why did Zcash rise by 35% in 24 hours?
Rising privacy concerns and a buying frenzy — driven by demand for alternatives to bitcoin — sent ZEC shares higher.
How high can ZEC rise if the bullish momentum continues?
If the momentum continues, ZEC could regain $274 and possibly target $303, the 2021 correction level.
Since his strong return Zikash [ZEC] It erased three years of downtrend in the space of one week. After breaking out of a multi-year downtrend, ZCash rose to a three-year high of $274 before pulling back.
At press time, Zcash was trading at $244, registering a 35.22% increase over the past 24 hours.
But why is ZEC pumped?
Why did ZCash rise?
AMBCrypto notes that Zcash has risen, inspired by growing privacy concerns among cryptocurrency investors.
In fact, many investors have expressed concerns about it Bitcoin [BTC] It lacks sufficient privacy, which prompted the shift towards Zcash [ZEC]which is seen as a more private alternative.
Research scientist at MIT and co-founder of Zcash, PaidIt reignited the privacy debate by claiming that ZEC provides stronger privacy protection than Monero, Bitcoin, and even quantum-resistant systems.
This narrative has gained traction amid growing concerns about spam and illegal content on the Bitcoin network, pushing investors toward ZEC.
Source: Queenalyze
Over the past 24 hours, for example, buyers acquired 1.4 million tokens according to Coinalyze data. Historically, rising demand has preceded rising prices, as we have seen at ZEC over the past few days.
Investors are scrambling to get into futures positions
In addition to spot demand, investors, both whales and individuals, rushed into the futures market to chase the rally.
According to CryptoQuant, Futures Taker CVD futures remained steady throughout last week. When this metric is green, it indicates buyer and buyer dominance in the futures market.
Source: Cryptoquant
Thus, participants in the futures market are mostly buyers. This post is more widespread on Excess fluid [HYPE]. As such, Zcash saw 455.5K contracts bought compared to 430.8K contracts sold.
Source: Nansen
Typically, when buyers dominate the futures market, it means that most investors who enter are actively opening new positions.
Profit takers are not left behind
As expected, as the market rose, underwater stockholders and speculators rushed into the market to make a profit.
According to Coinglass, Zcash has recorded positive net inflow for three consecutive days. At press time, net inflow was $18.17 million, down from $22.9 million the previous day, indicating higher inflows.
Source: Coinglass
Historically, rising selling pressure has preceded falling prices, with downward pressure building and demand failing to absorb it.
How far can bulls push ZEC?
According to AMBCrypto analysis, Zcash rose as demand rose in the spot and futures markets, inspired by the privacy debate.
Because of this, the altcoin’s RSI has risen to 82, at press time, hitting the overbought zone. This rise indicates strong bullish momentum driven by rising selling pressure.
Source: Trading View
In fact, ZEC sat above the Parabolic SAR, confirming the strength of the uptrend. Therefore, if the momentum continues, ZEC will regain $274 and target $303 for the Saudi riyal, where the correction has begun in 2021.
Conversely, if momentum starts to fade, with profit taking taking over the market, ZEC will retreat to $177, with $124 where SAR acts as crucial support.
