Zcash (ZEC) Explodes 90% in a Month: Bull Trap or Major Rally Ahead?

TL;DR

Zcash (ZEC) has surged approximately 90% in the last month, reaching a price of $585 and a market cap nearing $10 billion. This rise contrasts with the overall bearish trend in the crypto market.

Key points

Zcash (ZEC) increased by 90% in the last month
Current price of ZEC is $585
Market cap of ZEC is nearly $10 billion
ZEC is the 14th-largest cryptocurrency
Overall market trend is bearish for other altcoins

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Many leading altcoins, including Ethereum (ETH), Ripple (XRP), and Solana (SOL), have headed south over the past 30 days, moving in step with the market’s predominantly bearish tone.

However, Zcash (ZEC) has defied the overall pullback, posting a roughly 90% price increase during this period.

How Much Higher?

The privacy coin ZEC was the talk of the town towards the end of last year when its price surged from mere $50 to over $700 in a matter of two months. Back then, though, the entire crypto market was booming (even if Zcash was among the standout performers), whereas the recent surge appears far more unexpected.

Earlier this month, the token’s valuation briefly exceeded $630 before slightly retreating to the current $585 (according to CoinGecko’s data). Its market capitalization neared $10 billion, making ZEC the 14th-biggest cryptocurrency after flipping Cardano (ADA) and Bitcoin Cash (BCH). One factor that could have played a role in the ascent is the overall uptrend in privacy coins, with Monero (XMR) and Dash (DASH) also well in the green on a monthly scale.

Somewhat expected, crypto X is once again rammed with users envisioning further gains for ZEC. CryptoJack, for example, claimed that the asset has broken out of a descending channel, suggesting it could be starting a major move up.

Sjuul | AltCryptoGems and JAVON MARKS also gave their two cents. The former said ZEC looks “pretty bullish” as it’s potentially breaking out of a bull flag. JAVON MARKS noted the token’s strong progress and forecasted a possible rise above $700.

A Desired Correction?

Contrary to the bullish predictions made by the aforementioned market observers, ZEC’s Relative Strength Index (RSI) suggests the asset may cool off in the near term. The technical analysis tool ranges from 0 to 100, with ratios above 70 signaling that the coin is overbought and due for a potential pullback. On the other hand, readings below 30 are often considered buying opportunities. ZEC’s RSI briefly spiked beyond 80, while now it stands at roughly 66.

Q&A

What caused Zcash (ZEC) to increase by 90% in a month?

Zcash's price surge may be attributed to a rising interest in privacy coins, alongside its unexpected performance against a generally bearish market.

What is the current market capitalization of Zcash (ZEC)?

Zcash's market capitalization is nearly $10 billion, making it the 14th-largest cryptocurrency.

How does Zcash (ZEC) compare to other cryptocurrencies like Ethereum and Ripple?

While leading cryptocurrencies like Ethereum and Ripple have seen declines, Zcash has experienced significant growth, outperforming them in the past month.