The price of Zcash (ZEC) has soared over 750% in the past three months, with token holders gaining over 20% in the past 24 hours.
Privacy Coin, which was dormant in the early days of cryptocurrencies, started gaining attention in October after lying dormant for nearly nine years since its launch in 2016.
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Arthur Hayes Reawakens Zcash Price Rise
As of this writing, ZEC is up 20.8% and trading at $332.52, according to CoinGecko data. This follows a recent post by Arthur Hayes, co-founder and former CEO of BitMEX, after he set a target price of $10,000 for ZEC, the powering token of the Zcash ecosystem.
Known for his contrarian macro views and market-moving comments, Hayes’ posts reinvigorated interest in altcoins after the Black Friday crash failed to stop ZEC.
Analyst AB Kuai Dong said, “After a long period of silence, a legendary Silicon Valley investor suddenly endorsed ZEC, prompting everyone to follow the trend and join in, sparking a month-long FOMO frenzy that followed.”
Zcash has periodically proliferated over the years, but has fallen into near obscurity due to increased regulation and a decline in developer activity.
In recent weeks, it has once again attracted the attention of traders, and not just for nostalgia’s sake. Against this backdrop, analysts likened ZEC’s price rise to the early Bitcoin and Ethereum mania, saying several structural catalysts are now in place.
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“ZEC really surprised me. The price is up +755% in 3 months and tested the $305 “ATH” resistance. “Grayscale launched the ZCash Trust this month, and the HyperLiquid listing, upcoming halving, and ‘BTC vs. ZCash’ debate sparked an explosion of momentum,” said crypto analyst Lennart Snyder.
Technical analyst Clifton FX echoed the same sentiment, highlighting the rising triangle pattern in the ZEC price on the 8-hour chart, suggesting the possibility of a further 100-150% rise on a breakout.
Still, not everyone is convinced. Ignace DeFi, a popular DeFi analyst, said that Zcash is a perfect case study of how stories are born and spread. The analyst warned that much could result in coordinated pump exit liquidity.
Additionally, Ignas DeFi described a reflexive loop where traders see ZEC content on X (Twitter) and buy to make sure they don’t miss out. As community members engage in more ZEC posts, FOMO amplifies the hype and fuels the cycle further.
Mert Helius, CEO of Helius Labs, expressed skepticism, citing ZEC’s valuation compared to large altcoins.
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Zcash Price Outlook: Why ZEC Holders Should Focus on $281.35
At the time of writing, ZEC price is trading at $333.77, with attention focused on the $281.35 support level, which is the average threshold (midline) of the supply zone between $270.95 and $292.22.
In retrospect, at least before the recent breakout, every time the price tested this order block, it encountered intense selling pressure that halted the upside.
From a technical perspective, ZEC price is trading within an ascending parallel channel. As long as the price of the asset remains within this technical formation, the asset is poised to receive further profits.
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The momentum continues to rise as the RSI (Relative Strength Index) is still rising, and Zcash price may rise further accordingly and reach $360. Such a move would be 6% above current levels.
Conversely, if the upper limit of the ascending channel holds as a resistance level, ZEC price may fall. A break below the channel midline at $298.35 will likely worsen the correction and result in a break of the 9-day SMA (simple moving average) support level.
However, a correction will only be confirmed if the decisive candlestick close falls below the $281.35 average threshold, and selling pressure is likely to increase further. Below this level, ZEC price will be in the hands of bears who are ready to sell.
Selling pressure could push Zcash price up to $240, effectively breaking out of the bullish technical formation.
In a dire case, the ZEC price could fall below the psychological level of $200, potentially widening the losses further.
The RSI position of 79 is also causing concern, suggesting that the ZEC token is already significantly overbought and could soon undergo a correction due to buyer exhaustion.
