ZIn the past 24-hours, Zcash (ZEC) has dumped, just like the rest of the market. At the time of writing, it is down by 10%. However, in spite of this dump, there is a probability that it could bounce back in coming days. That’s because, this drop has pushed it to an area of major support across multiple timeframes, and it’s holding.
For instance, on the 6-hour chart, Zcash (ZEC) is trading above the 100-day moving average, which is acting as key support. After the initial dump that pushed it slightly below this level, Zcash has been consolidating above this level for over 15-hours. The same scenario is playing out on the 12-hour chart, where Zcash (ZEC) has been on holding up strongly above the 55-day moving average. This is a clear indicator that this was just a minor correction, and that bulls are still firmly in charge of the market. If it was a bearish reversal, there is a high probability that it could have broken this price range by now, and tested lower lows. In essence, an upside bounce is more likely at this point.
If Zcash (ZEC) breaks out to the upside, there is a high probability that it could rise to $60. This is a major resistance for Zcash (ZEC) on both the 12-hour and the 1-day charts. As such, it is likely to range around this level, and if buying volumes increase, then it could possibly break above it, and test new highs, probably between $90 and $100. However, in a market as volatile as crypto, it is always prudent to factor in the unexpected. In this case, there is always the risk that bearish sentiment could push the price lower.
Even if that happens, Zcash (ZEC) is still relatively safe, when its price action is compared to other altcoins. That’s because if it drops below $50, chances are that it could find next support at $48 – $47. That’s a minor drop and offers a perfect entry point into a long position.
Fundamentals-wise, Zcash (ZEC) still holds supreme. It is one of the strongest privacy coins in the market, and that’s a growing market. It’s a growing market because, as wealth inequality becomes a more pronounced problem all across the world, the wealthy will feel an even greater need to shield their wealth. Zcash is a perfect tool for doing this because it literally allows you to carry your wealth in your pocket, and do so anonymously. It’s like having an offshore bank account in your pocket, and no one has the capability to take it take it away from you. That’s powerful and will see the value of ZEC grow significantly going into the future.
Its potential is also increased by the fact that it can be used to send money to non-private addresses. This means that, even if governments were to declare an all-out crackdown on privacy coins, Zcash would be on the safe side of regulations. This could see its value increase exponentially in the long-run.