Zcash Stays Strong Amid crypto Market Turmoil
Zcash (ZEC) has shown remarkable resilience, maintaining its value near its recent peak despite the broader cryptocurrency market’s downturn. The token’s price hovered around $274, a slight dip from its high of $280 this week.
Several factors have contributed to Zcash’s stability. A short squeeze was sparked by Grayscale’s declaration of a new Zcash fund. This move,along with a surge in privacy coins like Dash adn Monero,has bolstered ZEC’s position. However, the market’s bullish sentiment has also led to high leverage and funding rates, signaling potential risks.
Analysts warn that the current market conditions could lead to a reversal. The funding rate has hit an all-time high, indicating that many traders are using leverage to bet on Zcash’s rise. This could lead to a market correction if the trend becomes overcrowded.
Technical indicators also suggest that Zcash may be overbought. The Relative Strength Index is at 82, and the Stochastic Oscillator is at 89, both extreme levels that often precede a price drop. According to the Wyckoff Theory, Zcash is in the markup phase, which could soon shift to distribution and markdown, leading to a price drop.
If this happens, ZEC could fall to its critical support level of $100, a 60% decrease from its current value. Traders should stay cautious and monitor these indicators closely.
