The Storms Are Gathering Over Zcash Stellar Rally
From a modest $23.81 on July 12 to its current standing, ZEC's price has undergone a nearly twofold increase – a metric that underscores the volatile nature of the cryptocurrency market. CoinGecko's insights reveal an equally significant escalation in market capitalization from $360.68 million on the same date, bolstered by the price jump. Notably, the market cap is an amalgamation of the coin's price and circulating supply. With Zcash's total supply capped at the same figure as bitcoin's 21 million but only 15.11 million in circulation, the spike to a $625.72 million market cap highlights the critical role of price in this calculus.
Despite this, a contrasting trend emerges in ZEC's volume, which has receded by 44.99% to 79.66 million from a previous high of more than $145 million on August 10. Traditionally, a concurrent rise in both volume and price hints at a bullish market sentiment, indicating stronger buying than selling pressures. However, the decline in volume amidst a price increase suggests a weakening of buyer dominance, potentially setting the stage for a price correction. If this volume trend prolongs, ZEC might see its price retracting below the $41 mark soon.ZEC Price Prediction: Gains Days Over, Retracement Next
The uptrend that ZEC embarked on in July saw its value escalating from below $18 to a height of $34.75 by August 3. Despite facing a downturn immediately after, the coin managed to soar to a peak of $42.97, largely fueled by bullish momentum. The Relative Strength Index (RSI), a pivotal momentum indicator, stands at 77.02 at present. This indicator is instrumental in identifying when a crypto asset is overbought or oversold, with readings above 70.00 signaling the former. Consequently, ZEC's position suggests that a market correction or retracement might be on the horizon.
Employing the Fibonacci retracement levels, a popular technical analysis tool used to pinpoint possible support and resistance areas, ZEC's price could potentially dip to $37.18 in the near term. However, a reversal from this level, should it materialize, could forestall further losses. In fact, if buying pressure intensifies, ZEC could eclipse its recent high of $42.97, possibly testing the waters around the $44 mark.
Disclaimer
In alignment with the Trust Project guidelines, this price analysis serves purely for informational intents and should not be regarded as financial or investment counsel. Market conditions are inherently fluid and can alter unpredictably. It is recommended to undertake thorough research and consulting with a seasoned professional before embarking on any financial ventures. Our commitment to delivering factual, unbiased reporting stands, though readers are advised that market predictions are speculative by nature and subject to change.
