Zcash price has gone parabolic, pushing it to its all-time high, making it one of the best-performing tokens. ZEC jumped to $1,171, up by 530% from its lowest level this year and nearly 4,000% from last year’s low. This surge has brought its market capitalization to nearly $20 billion, making it the 20th-biggest coin in the industry.
Zcash has overtaken Dogecoin, Monero, and Chainlink
ZEC price has been one of the best-performing coins since last year, when it went parabolic following years of consolidation. This surge has coincided with the rising demand for privacy tokens, including popular names like Monero and Dash.
Zcash has soared as demand from retail and institutional investors has remained at an elevated level. For example, the recently launched Grayscale Zcash ETF (ZCSH) has gained substantial assets and now has gained over $463 million in assets under management (AUM). This growth makes it one of the fastest-growing ETFs in the crypto industry.
Zcash is also seeing more usage in its shielded addresses. Data shows that the number of shielded tokens has risen in the past three consecutive weeks. It jumped to 4.85 million tokens, the highest level since June, and much lower than last month’s low of 4.32 million.
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The shielded address aspect is an important one because of how Zcash works. Zcash is a crypto project similar to Bitcoin. The only difference is that it offers two types of tokens: shielded and unshielded. Users selecting shielded addresses prefer to have their transaction details private.
In this case, transaction details like the sender, receiver, and amounts are hidden from the public. This is different from other top cryptocurrencies, where the transaction details are in a public ledger. As a result, Zcash has become popular among users who prefer private transactions.
It is also popular in cybercrime operations, a move that has become relevant because of its deep liquidity. For example, data shows that the token had a 24-hour volume of over $1.6 billion, higher than most tokens. The amount of ZEC tokens in exchanges has also continued falling, a sign of the rising accumulation.
Regulations have also helped Zcash and other privacy tokens. Under Gary Gensler, regulators took a tough stance on privacy tokens, arguing that they were promoting illicit activity. This has changed during the Trump administration.
Zcash price technical analysis
ZEC price chart | Source: TradingView
The daily chart shows that the ZEC price has gone parabolic in the past few months. It has already jumped above the crucial resistance level of $688, its highest level in May this year and November last year. Moving above that level confirmed the bullish outlook.
The token has also moved above the bullish pennant pattern it formed in August. This pattern is made up of a vertical line and a symmetrical triangle. In most cases, this pattern normally leads to more gains.
These patterns suggest that the token may surge to the resistance level of $1,500. The risk, however, is that the token has become highly overbought and has diverged from the historical moving averages, raising the possibility of a mean reversion.
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