Zcash edges closer to a third consecutive week of consistent uptrend, following another massive rise over the last three days.
It trades over 36% above Monday’s opening price and has crossed a critical level (one that could trigger a surge higher). Currently trading at $562, the current price shows a significant correction from its recent high.
ZEC surged to a high of $606 on Wednesday, surging almost 19%. While it faces notable selling pressure, the altcoin will mark its seventh consecutive day of gains in the current session. The duration of the uptrend raises concerns among the bulls, but trading action over the last 48 hours offers a glimmer of hope.
The coin gained a whopping 22% on Tuesday. In most cases, prices will retrace significantly after a sharp rise. However, it surged even higher the next day.
There are two major factors fueling the current run. The first, fundamentals. On May 5, Multicoin founder Tushar Jain announced that the firm had built a significant position in ZEC. He also commented that the coin runs on the same ideal crypto that it was founded on.
Although the large position he described was established in February, Tuesday’s proclamation thrilled investors, resulting in a massive hike.
The second fuel is the bullish state of the crypto market. The fear-and-greed index is at 50, the highest in almost two weeks. Investors continued to build on the bullish sentiment that followed the halt of US hostilities in the Middle East.
The entire crypto market is seeing massive increases, with the cap climbing above $2.70 trillion for the first time since January. Bitcoin also attained a new high, flipping $82k for the first time in over three months.
With these factors buoying the uptrend, the possibility of further increases remains high.
How High Will Zcash Go?
Zcash flipped $600 for the first time since November. Per the 1-day chart, it is not a tough level, and flipping it has almost resulted in further increases. For example, the first time it flipped the mark, it surged above $700 and then trended toward $670 after retracing.
If the trend repeats, ZEC will surge even higher in the coming days. It will break above, but a new all-time high remains bleak.
To guarantee an attempt at the ATH, the altcoin must sustain trading above $600 for an extended period. Drawing lessons for November, it may hover around this key mark for up to seven days before reaching it.
This reveals the first factor that could stop the coin from attaining a new ATH: failure to defend $600. Indicators suggest an increased likelihood that the asset may fail to remain above the mark.
The second factor is the global sentiment in the cryptocurrency market. A recent analysis noted that spot volume on BTC has significantly shrunk over the last seven days. This means that the latest hikes are derivatives or leverage-driven.
For Bitcoin, investors are targeting $84k. After attaining the level, prices will retrace. If BTC attains its target before ZEC, the selling pressure across the market could drag prices down, halting its advance at the milestone.
Analysts also predict that the apex coin will attain its target this week. It means the altcoin must hit the stipulated mark within the next four days.
