The post Zcash (ZEC) Surges 90% But Faces Potential Short-Term Volatility, Technical Analysis Suggests appeared on BitcoinEthereumNews.com.

The cryptocurrency Zcash (ZEC) has experienced a dramatic increase of 90% over the past month, solidifying its position among the top three performing altcoins. Beginning at $23.81 in mid-July, ZEC’s price has surged to $41.36, significantly boosting its market capitalization from $360.68 million to $625.72 million. Despite the impressive rally, questions remain regarding the sustainability of this upward trend. Explore the factors contributing to the remarkable rise of Zcash (ZEC), analyze technical indicators, and understand key insights for investors navigating this dynamic crypto market. Analysing the Decline in Trading Volume The privacy-centric cryptocurrency Zcash has recently seen a significant drop in its trading volume. On August 10, the trading volume peaked over $145 million but has since decreased by 44.99% to $79.66 million. In typical bullish scenarios, rising prices coupled with increased trading volume are observed. This is not the case with Zcash, where the decreasing volume may suggest an impending slowdown in bullish momentum. A continued decrease in trading volume, while the price rises, could signal a potential drop below the current $41 level. Technical Analysis and Future Projections Zcash’s upward trajectory commenced in July, with its price moving up from below $18 to a high of $34.75, before encountering resistance and dropping back to $25.43. Bulls have managed to regain some control, propelling ZEC to $42.97. However, this rapid climb has resulted in an overbought condition, with the Relative Strength Index (RSI) showing a value of 77.02. According to technical analysis, ZEC might correct to $37.18 in the short term. A strong rebound from this level could potentially negate further declines, enabling a retest of the $44 resistance region. Key Insights for Investors Here are some critical points that investors should consider: Regularly monitor ZEC’s trading volume to gauge the strength of the bullish trend. Pay attention to…

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Filed under: News - @ August 11, 2024 7:10 pm