It’s a bearish end of the week for crypto, as prices remain subdued. However, in the last 12-hours, Zcash (ZEC) has gained bullish momentum that has seen it edge higher by about 4% to test a high of $61.08. However, it has failed to break above a key resistance level at $60.29 on the 200-day moving average.
This could mean that the overall trajectory for Zcash is bearish. The possibility of a further drop is accentuated by the fact that bitcoin (BTC) is still bearish, and it’s still far from key support, which could possibly be at $3200. Besides, it’s a weekend, which means that any potential bullish momentum might be subdued by the decline in volumes that usually happens on weekends. If it drops, Zcash (ZEC) could possibly test $53.39 within the day.
In spite of this bearish sentiment, the long-term prospects for Zcash look good. For starters, like all other altcoins, it trades in the same direction as Bitcoin (BTC), but gains faster in a bull market. This means that the moment Bitcoin (BTC) turns bullish, altcoins will start to gain, and Zcash will turn bullish too.
There are a number of factors that support the possibility of Bitcoin (BTC) gaining bullish momentum this year. The first one is that it is trading along a key long term support on the weekly 200-day moving average. If this support holds, Bitcoin could consolidate around the $3200 – $3700 region before some major influx of capital gives it a bullish push. Such a push would come from something like approval of Bitcoin ETFs. For instance, if the Bakkt ETF starts trading, it would have a positive impact on the value of Bitcoin (BTC). That’s because it will be physically settled. Such a positive push to the value of Bitcoin (BTC) could uplift altcoins, and Zcash (ZEC) has what it takes to be among the biggest altcoin gainers.
One the factors that support it is its dominance in the privacy market. Zcash (ZEC) and Monero (XMR) are the two most dominant privacy coins in the market. Zcash (ZEC) privacy features are so good that other cryptos are using its Zk-Snarks technology as a second layer privacy solution. It is even floated as a short-term scaling solution for Ethereum (ETH). With such strengths, Zcash (ZEC) has the intrinsic value to see it rise exponentially in value, in the event that Bitcoin (BTC) turns bullish.
Then there is the element of its supply. Like Bitcoin (BTC), Zcash (ZEC) has a very low coin supply, which is a plus for a coin that has such a powerful use case. It means that in a bull market, money would be chasing a very limited number of coins. On the strength of its low coin supply, price would rise faster since demand would be chasing a limited number of coins. This could see Zcash (ZEC) easily test highs of $1000 or even more. It’s a crypto to keep an eye on in the long run.