Can the ZEC Token Price Maintain Its Rally?
ZEC, the native token of privacy-focused protocol Zcash, surged 23% in the past 24 hours, becoming the cryptocurrency market’s biggest gainer. It outperformed major assets such as Bitcoin and Ethereum, which gained 1% and 3% respectively during the same period.
Currently trading at a two-year high of $56.93, ZEC appears poised for further growth. Here’s why.
Zcash bounces back, thanks to Tornado Cash
ZEC’s double-digit rally reflects Privacy coins have seen a broader rise in value over the past 24 hours, driven by landmark events Decision of the U.S. Court of Appeals for the United States.
The court lifted Treasury Department sanctions against Tornado Cash, a cryptocurrency mixing service that had previously been targeted by the Office of Foreign Assets Control (OFAC) in 2022 for allegedly facilitating illegal activity.
The ruling found that OFAC exceeded its authority by emphasizing that Tornado Cash’s immutable smart contract did not qualify as “property.” Since the ruling, the market capitalization of the top privacy coin has increased by 4%.
ZEC responded positively
As of this writing, ZEC is trading at $56.93The price was last touched in October 2022. The spike was accompanied by a significant increase in trading activity, with trading volume reaching $175 million in the past 24 hours, a 68% increase.
When an asset’s trading volume increases along with its price, it indicates strong market interest and increased activity among buyers and sellers. This combination suggests sustainable price growth. The increase in trading volume reflects greater liquidity inflows and broader participation in the market rally.
The Aron ascending line on the ZEC daily chart confirms the strength of its uptrend and is currently at 100%. The Aroon indicator measures trend strength and direction by tracking the time since the highest high (Aroon Up) and lowest low (Aroon Down) within a specific period.
An Aroon Up value of 100% represents a recent high, indicating strong upward momentum. In the case of ZEC, the Alon descending line is located at 7.14%, reflecting minimal downward pressure and further supporting the bullish trend.
ZEC Price Prediction: New Highs Coming?
If the current rally continues, ZEC token price will establish support at $57.20. Success in achieving this could push its price towards $66.98, a level last reached in September 2022.
However, if profit-taking activity begins, ZEC token price may drop to $49.29.
Disclaimer
conform to trust project Guide, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to providing accurate and unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult a professional before making any financial decisions. Please note that our terms and Conditions, privacy policyand Disclaimer Updated.
