Although its popularity has declined, ZEC has remained in a range between 5,000 and 6,970 daily transactions. The value of the cryptocurrency needs to break through the support at USD 105 for users to think about selling.
Zcash (ZEC) is an old cryptocurrency that has lost prominence as new projects attract attention. However, it is still a relevant part of the ecosystem and a leader in its segment.
ZEC is trading at around USD 142 and has accumulated a 3.7% profit in the past 24 hours. It has a market capitalization of approximately USD 1,666 million and ranks 79th in the cryptocurrency market.
The design of this cryptocurrency seeks to maximize the privacy of user transactions. Although its popularity has dropped dramatically, it remains one of the best networks for low-cost and anonymous transactions.
Zcash does not lead the privacy segment but Monero (XMR), whose market capitalization is approximately USD 4.583 million.
The Current Situation of the Zcash Network
The number of daily transactions on the Zcash network has dropped a lot in recent years. However, it has remained in a range of around 5,000 daily transactions, even reaching 6,970, thus showing an upward trend.
Although the decline in popularity seems to have stopped the development of Zcash, that is not true. The network will launch the Halo 2 protocol shortly, which has caught the interest of Ethereum and Filecoin developers.
The implementation of that protocol, which will occur in January 2022, will include several important features. The most relevant is the possibility that users will be able to conduct their transactions with greater privacy.
Halo 2 operates without the confidence of zero-knowledge testing, making it unnecessary to resort to a reliable setup. That is precisely one of the main criticisms that the privacy of that network has received.
For that purpose, the protocol implements several initial parameters, which it destroys to avoid spoofing operations.
Analysis and Forecast of the Price of Zcash
The latest monthly ZEC/USD chart shows a clear succession of increasingly high lows and highs. That suggests that there will be an upward trend in the value of that cryptocurrency in the medium term.
A higher low is under development, which could give way to a very relevant new bullish momentum. If that happens, the price of Zcash could go to at least USD 298.12.
The price of ZEC must break through the support at USD 105 for users to think about selling their holdings. However, that could be a way to broaden the corrective process and then make way for momentum.
What the ZEC Weekly Chart Reveals
An analysis of the weekly Zcash price chart allows for more short-term analysis. That reveals that the value of the cryptocurrency has accumulated high gains in recent weeks after an essential downward correction.
It is also possible to note the continued weakness of the bears to reach lower lows. The recent support at USD 110 could make the bulls develop momentum that needs to extend further.
In the short term, the price of ZEC could hit USD 176 and even the next resistance at USD 298.12.
By Alexander Salazar
