A surge in buying has sent the Zcash price to its highest level in over six months as traders embrace the formerly out-of-favour coin.
Zcash (ZEC) is trading at $251.30, up just under 15% in early Asian trading on Tuesday. Remarkably, at today’s high of $266.10, the crypto had gained an impressive 90% from last week’s low. As a result, ZEC is climbing up the crypto leaderboard. At the current price, Zcash has a market cap of around $2.3 billion, ranking it the 55th-largest cryptocurrency, behind Harmony (ONE).
The recent spike follows the announcement by its developers Electric Coin Company that Zcash will transition from Proof of Work (PoW) to an energy-efficient Proof of Stake (PoS) consensus. The announcement drew support from the Digital Currency group’s Barry Silbert, who Tweeted that he planned to buy more ZEC. As a result, the Zcash price is experiencing a parabolic rally, which could have further to run.
The daily chart shows the 50-Day Moving average (DMA) has completed a Golden-cross above the 200-DMA, highlighting the bullish momentum. Furthermore, ZEC is now well clear of the psychological resistance (now support) of $200.
The price is likely to squeeze higher in the short term considering the fundamental and technical improvements. An obvious target is the April high of $308.22. In contrast, an exaggerated extension could have the bulls aiming for May’s multi-year top of $392.44.
However, the price is starting to look stretched, which leaves it vulnerable to a correction, although as long as it remains above $200, it should continue to trade well. On that basis, a close below $200 invalidates the bullish outlook.
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This post was last modified on Nov 24, 2021, 07:41 GMT 07:41