Zcash Price Up by 16.60% – Time to Buy ZEC Coin?
Zcash is a privacy-focused digital currency that has recorded impressive bull runs in recent months despite the downtrend in the global crypto market. The asset’s recent rally is pushing investors to buy ZEC.
The frequent uptrends in ZEC’s price result from the digital currency’s continuous push for improvements.
The Zcash blockchain serves as the ‘secure blockchain protocol’, ensuring the security and confidentiality of financial transactions. Zcash utilises the zk-SNARKS technology to provide its users with the strongest privacy available in any virtual currency.
Zcash’s technical and fundamental indicators will help us understand the rationale behind the coin’s upturn in price and motivate potential investors to buy ZEC.
ZEC: Coin Market Position
Zcash is currently trading at $254. This price shows a 16.60% increase in the last 24 hours. The Electronic Coin Company (ECC) asset dominates 0.13% of the global crypto market and is the 55th most valuable cryptocurrency.
The Proof-of-Work (PoW) cryptocurrency has a market capitalisation of $3.3 billion, which has increased by 25.81% at the moment of writing. The coin currently has a 24-hour trading volume of $1.29 billion, up by 56.44% in the last day.
The privacy-centric crypto asset has accrued a 52.04% increase in the last six months and is on a strong bullish run. The year-to-date (YTD) statistics confirm the coin’s growth potential with a 293.68% increase in price.
In the last six months, ZEC’s price action has been one of a continuous thrust towards a new resistance and support price.
The coin was trading at $155 on June 2 but glided down to the $85 price mark on July 20 before skyrocketing to $173 on September 5, almost two times the previous price peg.
The month of November 2021 introduced the coin to the $200 range as the asset traded at $205 on November 11 before hitting its current price of $254.
Having reached an all-time-high (ATH) of $3191 on October 29 2016, the coin is likely to retest that price range. This increase makes the period a good time to buy ZEC.
ZEC: Technical and Fundamental Analysis
The technical indicators confirm that ZEC is on a bullish run. The coin is currently trading above the 20-day moving average (MA) support price of $187. The 200-day MA confirms a long-term bullish run as the indicator settles at the $145 price peg.
The moving average convergence and divergence (MACD) trend line depict a buy signal, and the Relative Strength Index (RSI) is on the 67.68 mark showing that ZEC is in the underbought region.
This RSI spot can serve as a great entry position to buy ZEC and rise with the market. ZEC is making strides as the coin moves towards a new support and resistance price. However, fundamental factors are contributing immensely to the upturn in price.
ZEC’s hike in price was influenced by the announcement made by the cryptocurrency’s developer, ECC, on November 19 and a change in its operation.
The company disclosed the likely transition from Proof-of-Work (PoW) to Proof-of-Stake (PoS) consensus protocol within the next three years.
The ECC highlighted that the upgrade would limit the coin’s downward price motions by removing miners who quickly liquidate the token for Bitcoin or other fiat currencies.
The firm also disclosed the mission to build and support technology that would provide users with access to a fair currency with a framework that protects the users’ dignity, privacy, and security.
As web3 technology takes over various sectors, the ZEC currency will provide economic security for users because of the coin’s interoperability technology and zero-knowledge cryptography.
The company intends to achieve this set goal by introducing a bundle called Halo Arc, which includes a Zcash, ECC Reference Wallet, ECC wallet SDKs and other libraries.