Zcash (ZEC) has been one of the best-performing privacy coins in recent weeks due to renewed interest in decentralized privacy.
As market sentiment strengthens, ZEC momentum appears poised for a retest of $500, a level not seen in over 7 years and 9 months.
Zcash investors are optimistic
Investor confidence in Zcash is reaching new highs, reflected in the spike in weighted sentiment. This indicator shows overwhelmingly positive sentiment towards the privacy-focused altcoin, suggesting that investors are becoming increasingly optimistic about its short-term performance.
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As investors seek exposure to privacy coins amid regulatory uncertainty surrounding other crypto sectors, Zcash has emerged as a clear beneficiary. Consistent capital inflows and an optimistic outlook indicate that ZEC may continue to enjoy upward pressure in the short term.
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From a technical perspective, Zcash’s macro momentum also supports this bullish narrative. The Chaikin Money Flow (CMF) indicator shows consistent inflows, confirming that investor interest remains strong. However, this indicator is approaching the overbought threshold between 20.0 and 25.0, indicating that the market may be nearing a saturation point.
Typically, ZEC has historically shown a tendency to reverse when CMF exceeds this level. This suggests that although the situation remains bullish for now, a short-term correction may continue as ZEC approaches the key psychological resistance level at $500.
ZEC price aims to break through barriers
ZEC price is trading at $416 at the time of writing, just below the $450 resistance. The altcoin has soared this month and maintains strong support above $400. This level is serving as an important foundation for the current uptrend.
If this momentum continues, Zcash could break above $450 for the first time in seven years and nine months and climb toward $500 before facing profit-taking pressure. The last time he attempted this level was eight years ago, so reaching this mark would be a huge milestone.
However, if selling pressure increases early, ZEC may fail to break above $450 and fall below $400, potentially revisiting $344. This would invalidate the near-term bullish outlook and suggest a short correction phase before the next attempt to move higher.
