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ZCash Price Prediction: ZEC Could Reach $300 as Momentum Builds Up

Highlights:

  • ZCash has bounced off the 24-hour $222.42 support
  • Rally off support now puts $294.17 resistance in focus
  • A push through $294.17 could see ZEC trade at prices above $300 soon

ZCash (ZEC) continues its rally, which has seen it gain 400% in the past month. At the time of going to press, ZCash was trading at $265.69, up by 15% in the day. This brings its total gains for the last 7 days to 90%. ZCash trading volumes are also surging in tandem with the price. 

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Over the previous 24 hours, ZCash trading volumes have shot up by 33% to stand at $856.5 million. This is an indicator that even after the sustained parabolic price rally, investors are still piling money into ZCash with expectations of even higher gains. The rising FOMO surrounding ZCash has a solid basis, and the odds are high that the price could continue to rise in the short to medium term. 

ZCash Proven History Draws Investors In An Increasingly Crowded Market

One of the key factors likely to keep pushing ZCash higher is that capital is hungry for growth, and the altcoin market is increasingly crowded with underperformers. As such, investors are increasingly shifting their focus to projects that have a solid foundation and are demonstrating growth. ZCash scores well on both fronts. For starters, it is one of the oldest cryptocurrencies and has withstood the numerous ups and downs of the market over the years. 

This lends it an element of credibility in the eyes of investors, compared to the countless pump-and-dump schemes that hit the market and then disappear. At the same time, ZCash is showing strong growth, a notable development amid mixed signals from the altcoin market. This signals to strong capital flow, and is driving FOMO into ZCash. Given ZCash’s resilience following the October 10 crash and the fact that the macro climate remains fragile, ZCash could be headed for new highs in the short term. 

Growing Need for Privacy Driving ZEC Demand

Besides its standout performance drawing in capital, ZCash is also benefiting from the growing need for privacy in finance. Across the globe, there is an increasing affront on privacy by regulators. This has seen investors increasingly seek cryptocurrencies that offer true privacy. It explains the resurgence of privacy-focused cryptocurrencies despite them being delisted from top exchanges in recent years.

ZCash is increasingly gaining favor with investors because it offers true privacy through zk-SNARKs. ZCash also recently integrated with NymVPN. This is a big deal as it means that ZCash can now be used for purchasing private internet subscriptions. It is a testament to the strength of real-world use cases in an increasingly privacy-conscious world.

ZCash Gaining Ground in Privacy Crypto Market

Data on ZCash adoption also suggests that it is winning the privacy cryptocurrency market. Currently, over 4 million of all the ZEC in circulation operate in shielded form. This indicates that a growing number of privacy-focused transactions are opting for ZCash over other networks. This reinforces the narrative that ZEC is one of the best privacy cryptocurrencies on the market, and could see investors looking to ride the narrative FOMO. The result is that ZEC could continue to rise and test prices it last saw during the 2017 cryptocurrency bull cycle.

Technical Analysis – ZEC Trending Towards Critical Resistance

After establishing strong support at $222.42 on October 14, ZEC is regaining upside momentum. Bulls are currently targeting the $294.17 resistance. If bulls take control and push ZEC through the $294.17 resistance, then ZCash could rally to prices above $300 in the short term.

Technical Analysis – ZEC Trending Towards Critical Resistance
Source: TradingView

However, if bulls lose momentum, then ZEC could be headed for a retest of the $222.42 support in the short term. Of these two scenarios, the odds are higher for a rally to $300 and above. That’s because the broader market is sending bullish signals, which is likely to inspire investors to FOMO more into ZEC.

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