After reaching a support zone near USD 100, the price of Zcash invalidates the medium/long-term bearish intention. The value of ZEC has to break through resistance at USD 167.50 before confirming that the bulls have regained control.
US president Joe Biden recently signed an executive order to assess the risks and opportunities of cryptocurrencies and blockchain technology. Although that caused prices to react quickly, almost all gains of crypto assets vanished. However, the value of ZCash (ZEC) continued to rise against the general trend in the market.
Biden has shown interest in regulating the cryptocurrency ecosystem, which may be causing fear among investors. Many believe that government measures could lead to more censorship and restrictions, which decentralized cryptocurrencies avoid.
In that context, privacy-focused cryptocurrencies like Monero (XMR) and Zcash seem to benefit the most. While BTC has fallen by 4.56% over the last week, ZEC has jumped by 25.6% in the same period.
ZEC is trading at around USD 147.48 and has accumulated a 25.6% gain over the last week. Its daily trading volume is above USD 352.13 million, and its market capitalization is about USD 1.79 billion, according to CoinGecko.
Although Monero is still the leader in the privacy sector, the recent catalyst did not make it react as strongly. XRM is trading at around USD 187.03 and has accumulated a 13.1% over the last week.
Monthly Technical Analysis of the Price of ZEC
After the recent bullish jump in price, the monthly chart of ZEC/USDT shows excellent behavior. The movement of the value of Zcash is a sign that it will likely resume the long-term trend.
If the price of Zcash maintains its current trend, there may be new all-time highs in the short term.
There was a high demand for ZEC at a large support zone near USD 100. After that, it invalidates the downward transition attempt of the mid/long-term trend.
The price is currently crossing the 8-month EMA and 18-month SMA to the upside as it recovers them.
Sellers have shown little strength to reach lower effective lows in this time frame. That indicates that the space for sales is already coming to an end.
The price will have to cross the trend line shown on the monthly chart to confirm new highs.
Weekly Analysis of the Price of Zcash
The weekly Zcash price chart also shows an excellent technical scenario. The breaking through of the nearest resistance at USD 124 has contributed to that.
After several months, the bulls are defying the bearish intention of the value of ZEC. The price maintains the 8-week EMA and 18-week SMA crossed to the downside. Although those indicators work as dynamic resistances, a breakthrough is quite likely in the short term.
Before confirming that the bulls have regained control, the price must reach and breakthrough resistance at USD 167.50. If it does not happen soon, the value of ZEC could fluctuate in a sideways/bearish range for a bit longer time.
By Alexander Salazar
