Zcash Price Soars: Can This Privacy Coin Sustain its Explosive 520% Rally?
The cryptocurrency market often delivers unexpected surges. Recently, the Zcash price has captured significant attention. This privacy coin has delivered an astounding 520% monthly gain, defying broader market trends. Investors now wonder if this impressive ZEC price rally can continue. We will explore the technical indicators and expert opinions shaping Zcash’s immediate future.
Zcash Price: An Unprecedented Rally
Zcash (ZEC) has recorded a phenomenal surge. It climbed over 520% in the past month. This impressive performance occurred even as the wider crypto market faced a sell-off. That market downturn wiped out billions in leveraged positions. ZEC, a prominent privacy coin, approached the $300 level. This price point was last seen in December 2021. Such a strong showing positions Zcash as a standout performer in the current market. The question remains: can the Zcash price maintain this momentum?
The chart below illustrates ZEC/USDT weekly price action. Source: TradingView
Decoding ZEC Price Technicals for Continued Growth
Current ZEC price technicals hint at further upside potential. The explosive uptrend shows consolidation within a classic bull flag pattern. This setup typically precedes another leg higher. On the 4-hour chart, the latest candle formed a gravestone Doji. This appeared near the upper trendline resistance. It suggests a possible short-term pullback toward the flag’s lower boundary, around $237. However, a bullish breakout remains possible.
ZEC could confirm this breakout. Buyers must push the price above the flag’s upper trendline. Such a move would set a technical price target for October near $336. This represents approximately 25% higher than current levels. This setup aligns with healthy consolidation. The price holds above the 20-period (green) and 50-period (red) exponential moving averages (EMA). This indicates that the broader bullish momentum remains intact. It persists despite some signs of short-term overheating. This positive technical analysis supports the idea of a sustained crypto rally.
The ZEC/USDT four-hour chart provides this detailed view. Source: TradingView
Potential Headwinds for the Privacy Coin: Bearish Scenarios
Despite the strong performance, a bearish scenario for the Zcash price exists. If the ZEC price plunges between key supports, a decline is more likely. These supports include the flag’s lower trendline and the 20-period EMA. This increases the odds of a drop toward the 50-period EMA, around $210.75, in October. Significant cumulative long liquidations are stacked near the $244 level. Roughly $5.36 million is at risk here. This makes it a critical zone for bulls, as shown on the CoinGlass chart.
The ZEC/USDT liquidation heatmap (24 hours) highlights this risk. Source: CoinGlass/Binance
A decline below the $244 threshold risks triggering a cascade of forced long liquidations. This would deepen any pullback before a potential rebound. Many traders’ stop-losses are waiting at this point. Their liquidation points could send ZEC prices toward the $210.75 target. Furthermore, Zcash has reached record overbought levels. Its weekly relative strength index (RSI) stood above 92 on Monday. This is its highest level ever recorded. The previous peak RSI was 78 in April 2021. Following that, ZEC’s price fell by nearly 70% over several months. A similar cooling-off phase could follow now. This is especially true if the price fails to establish firm support near the 0.786 Fib retracement level at $245. Therefore, careful consideration of this technical analysis is crucial.
The ZEC/USDT weekly chart displays these RSI levels. Source: TradingView
Expert Insights on the Zcash Crypto Rally
Analysts are closely watching this privacy coin. Analyst Altcoin Sherpa provided insights into the Zcash price movement. He suggested that any declines toward $200 might present a ‘buy’ opportunity. He believes these lower levels could form a bottom in the coming days. “I’ll be interested around $230 or lower if it comes,” he added. This perspective offers a counterpoint to the immediate bearish outlook. It suggests underlying strength for the ZEC price in the longer term. This expert view adds another layer to the ongoing technical analysis.
The ZEC/USDT three-day chart from Altcoin Sherpa illustrates this. Source: Altcoin Sherpa/TradingView
Conversely, a bounce from the $245 support could propel the price higher. It might rally toward $307, or even retest ZEC’s 2021 high at around $375. The market’s direction hinges on key support and resistance levels. The EU’s proposed ban on anonymous crypto accounts and privacy coins by 2027 also adds a long-term regulatory factor for Zcash and similar assets. This regulatory landscape could influence future investor sentiment and the broader crypto rally for privacy-focused digital assets.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
