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ZCash Price Forecast: Why ZEC Could Rebound to $569 Soon

Highlights:

  • ZCash forms intraday support at $471.99 after a day-long correction
  • Rebound off support could see ZEC test $569 resistance 
  • Failure at $471.99 support could send ZEC to $400

The cryptocurrency market is showing weakness today. However, ZCash is among those showing the most weakness intraday. At the time of going to press, ZCash was trading at $482.21, down by 26.66% in the day. Even in this hard drop, ZCash trading volumes have shot up by 150% to stand at $5.12 billion. This surge in volumes at a time when the price is going down points to more holders starting to sell. 

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Such price action is reasonably expected after the kind of price rally that ZCash has recorded recently. In only two months, ZCash has rallied by over 1500%. With such a parabolic price move at a time when the broader market has been weak, some profit-taking was going to happen at some point. However, there is a good chance that after this correction, the rally back to the recent highs, and potentially more, could follow.

Trading At A Price Range Analysts Expected After Dip

That’s because ZCash is currently trading at the price point where analysts expected it would trade in the event of a correction. Analysts were in consensus that in the event of a correction, ZCash could drop to around $400 to $500 price range. ZCash has fallen into this range and appears to be stabilizing around $480.

Now that it is within the expected level of correction, buyers could start coming back into the market, in an attempt to catch the next ZCash leg up. This is mainly because of the rising excitement that ZCash has the potential to not only retest these recent highs, but also potentially rally to $1000 or higher. Aside from analyst predictions, multiple factors support a ZCash rebound. 

Influential Crypto People Holding ZCash Likely to Influence Retail Buying

One of them is the fact that influential industry players have admitted to holding ZCash. A while back, Bitmex founder Arthur Hayes announced that ZCash is one of his biggest cryptocurrency holdings.

Such people holding ZCash are likely to influence the average holder to also buy, especially after its recent price action. At the same time, there are market reports that point to ZCash as being the next Bitcoin, albeit with the added advantage of privacy. This could trigger FOMO buying now that ZCash has dipped and send the price to new highs in the short term.

Changing Market Dynamics Favor ZCash

ZCash’s rebound is also likely to be driven by changing market dynamics. With growing regulations around digital money and identity, privacy is increasingly becoming a valuable asset. This explains why there is a growing demand for ZCash and other privacy coins. 

Given that governments are likely to get keener on digital transaction surveillance going into the future, privacy coins are likely to continue to grow in demand. ZCash is particularly well-positioned to benefit the most because it offers both shielded and non-shielded transactions.

As such, it is likely to continue having a presence on major exchanges even as other privacy coins get delisted. This is likely to keep the demand high from retail investors who primarily use the large exchanges. 

Technical Analysis – ZCash Price Finds Support After Strong Correction

After a sustained correction for the last 24 hours, ZCash has found some support at $471.99. If bulls can sustain momentum off this support, then a rebound to the $569.02 resistance could follow. On the other hand, if bears retake control and push ZCash through the $471.99 support, then a correction to $400 could follow.

ZEC
Source: TradingView

Of these two scenarios, a rebound to $569.02 is more likely. That’s because after the correction from over $700, buyers looking for dip opportunities have started coming back into the market. This is evident in ZEC’s price action after hitting $471.99. As more buyers come in, the price could head higher.

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