Zcash (CRYPTO: ZEC) extended its powerful bull run on Sunday, hitting a new record high and climbing into the top ten cryptocurrencies by market value. The coin jumped to $1,217, a gain of 130% year to date and 2,700% over the past 12 months, comfortably outpacing top coins like Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH).
Zcash Price Jumps as Demand Soars
ZEC is a top cryptocurrency that solves a major challenge facing mainstream coins like BTC and ETH: privacy. While transactions on Bitcoin, Ethereum, USDT, and USDC are typically public and traceable on their respective ledgers, Zcash gives users a choice, letting them send funds through shielded pools or keep their transactions public.
Data shows that more people are using their shielded addresses. BlockWorks data shows that the shielded supply jumped to 4.85 million ZEC tokens, its highest level since June this year. It has been in a steady increase since bottoming at 4.35 million in June this year.
ZEC has also jumped as the volume soars. Data compiled by CoinMarketCap shows that it was one of the most traded tokens today, with its 24-hour volume soaring to over $1.45 billion. Also, more data shows that its futures open interest soared to a record high of $2.43 billion. Open interest looks at the volume of unfilled put and call orders in the perpetual futures market. Shorts worth over $41.2 million were liquidated in this period.
Zcash demand is also gaining in the ETF market, where the recently launched Grayscale Zcash ETF has gained assets in the last four consecutive days. Its inflows soared by over $34 million, bringing its total assets under management to $350 million. It has an expense ratio of 2.50%, making it the most expensive crypto ETF so far.
ZEC Price Prediction: Technical Analysis
The daily chart shows that the ZEC token bottomed at $189.23, its lowest level in February and then started moving upwards. It formed a cup-and-handle pattern, a common bullish continuation sign in technical analysis.
The token then eventually made a bullish breakout and then formed a bullish pennant pattern, a common continuation sign. It made a breakout late last week as the two lines of the pennant converged.
Zcash has crossed the $1,000 level and has remained above all moving averages. Also, the Relative Strength Index (RSI) and the MACD indicators have continued rising. Therefore, the coin may continue rising as bulls target the psychological level of $1,500. However, with the coin being in the overbought level, there is a risk that it will pullback modestly and then resume the uptrend.
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