Zcash Price Experiences Remarkable Surge
The price of Zcash (ZEC) has witnessed an extraordinary increase of over 750% in the last three months, with holders enjoying a notable 20% rise in just the past 24 hours. This once-silent privacy coin, which emerged in the early days of cryptocurrency, has recently captured significant attention since October, following nearly nine years of relative inactivity since its inception in 2016.
Arthur Hayes Sparks Renewed Interest in Zcash
According to data from CoinGecko, ZEC has surged by 20.8%, currently trading at $332.52. This uptrend follows a provocative statement from Arthur Hayes, the co-founder and former CEO of BitMEX, who projected a target price of $10,000 for ZEC, the foundational token behind the Zcash network. Hayes, known for his unconventional market perspectives, has reignited enthusiasm for this altcoin, which has remained resilient even after the downturn experienced on Black Friday.
Analyst AB Kuai Dong noted that ZEC’s sudden resurgence is reminiscent of its past, driven by endorsements from influential figures in Silicon Valley, leading to a wave of investor interest and subsequent market frenzy fueled by fear of missing out (FOMO). Although Zcash has experienced sporadic price hikes throughout its history, it has largely receded into the background amid stricter regulatory scrutiny and diminishing developer engagement.
Comparisons to Early Ethereum and Bitcoin Trends
In recent weeks, ZEC has reappeared on the radar of traders, not just for nostalgic reasons, but due to potential market catalysts. Analyst Lennaert Snyder drew parallels between the current ZEC rally and the initial excitement surrounding Bitcoin and Ethereum. He noted that ZEC had astonishingly surged by 755% over three months, nearing its all-time high resistance level of $305, backed by factors such as the launch of a Zcash trust by Greyscale, a new listing on Hyperliquid, and an upcoming halving event.
Technical analyst Clifton FX pointed out a bullish ascending triangle pattern on ZEC’s 8-hour chart, suggesting the possibility of a further increase of 100–150% should a breakout occur.
Doubts and Concerns From Analysts
Despite the excitement, not all analysts share the same enthusiasm. Ignas DeFi, a well-known figure in decentralized finance, views Zcash as a prime example of how market narratives can rapidly gain traction. He cautioned that many investors might unwittingly become exit liquidity for orchestrated price surges. Ignas also described a feedback loop where social media activity around ZEC encourages further buying, amplifying the hype and drawing in additional investors.
Mert Helius, CEO of Helius Labs, expressed skepticism about ZEC’s valuation in comparison to larger cryptocurrencies. He argued that focusing solely on price increases can lead to poor investment decisions, emphasizing the importance of evaluating whether a cryptocurrency is undervalued based on its fundamentals rather than its recent price performance.
Key Support Levels for Zcash Investors
As of now, ZEC is trading at $333.77, and attention is shifting toward the $281.35 support level, which serves as the mean threshold within a supply zone ranging from $270.95 to $292.22. Historically, each time ZEC has approached this order block, it has encountered substantial selling pressure that has impeded further price growth, at least until the recent breakout.
Technically, ZEC is moving within an ascending parallel channel. As long as it remains within this pattern, there is potential for continued gains. With the Relative Strength Index (RSI) still on the rise, momentum appears to be building, suggesting that the Zcash price could further ascend, possibly reaching $360, which would mark a 6% increase from current levels.
However, if the upper boundary of this ascending channel acts as a resistance, a decline in ZEC’s price could occur. A drop below the midline of the channel at $298.35 would likely worsen the correction, and the support from the 9-day Simple Moving Average (SMA) could also be compromised. A decisive close below the $281.35 threshold would confirm a bearish correction, increasing the likelihood of further selling pressure. In a worst-case scenario, ZEC could plummet below the psychological barrier of $200, leading to significant losses.
The current RSI level of 79 indicates that ZEC may be significantly overbought, raising concerns of an impending correction as buyer enthusiasm wanes.
