Significant rise in Zcash price
The price of Zcash (ZEC) continues its upward trend, the highest it has been since January this year. The surge has propelled this cryptocurrency’s market capitalization close to the $900 million mark, representing an impressive growth of 125% from its lowest point this year – a clear bullish signal for this cryptocurrency.
Increase in total shielded value
The increase is not limited to Zcash’s market price. The total shielded value in its network also saw a substantial increase. Going from last month’s low of 2,650,000 ZEC to a current figure of 3,062,081 ZEC. This notable growth underscores the growing popularity of Zcash’s distinguishing feature – its emphasis on privacy.
Transparent versus Shielded Pools
The shielded value denotes the amount of ZEC held in the sprout and sapling pools, which are associated with shielded addresses. These addresses utilize zero-knowledge proofs to encrypt vital transaction details like the sender, recipient, and transaction amount, providing privacy and security.
In contrast, funds held in transparent pools are publicly visible, with exposed transaction details. The current holdings in the transparent pools stand at 12,977,815 ZEC. The juxtaposition of shielded and transparent pools underscores Zcash’s reputation as a privacy-focused cryptocurrency, a feature that is propelling its growing popularity.
Privacy Coins in Spotlight
The demand for privacy coins has been on the rise, leading to a surge in ZEC price. Additionally, Monero (XMR), the leader among privacy coins, has been rising consecutively for eight weeks, nearing its all-time high. This resurgence of privacy coins follows Tornado Cash resolving its legal challenges, further fuelling investor interest in these coins.
Zcash price technical analysis
Keeping an eye on the technical aspects, ZEC recently bottomed near the $28, a resistance level that had remained untouched on several occasions since February. However, the token succeeded in breaking this level and surged over the significant resistance of $42.45, the apex point from March 2 and April 1. Now, ZEC is looming over the 38.2% Fibonacci retracement level, a promising stage for an uptrend.
Furthermore, the crossover between the 50-day and 100-day Exponential Moving Averages has formed, a sign often interpreted as bullish. However, the Relative Strength Index sways toward 74, indicating overbought conditions in the market. ZEC is also currently in the third phase of the Elliott Wave cycle, typically the most extended and impulsive stage.
Considering this setup, ZEC looks set to continue its upward journey, with the bull market aiming for last year’s high of $79.80, which would represent an upside of 47% from its current levels.
