Privacy token Zcash (ZEC) touched a high of $163 on Thursday, reaching its highest point since April 2022 following a breakout of its Bitcoin and dollar trading pairs.
Zcash rose for five days at a stretch from a low of $54 on Sept. 28 to reach $163 on Oct. 2, marking a 201% surge.
This week, on Oct. 1, Grayscale announced the Zcash Trust, describing Zcash as similar to Bitcoin in its design: “Zcash (ZEC) was created from the original Bitcoin code base, but it uses a privacy technology that encrypts transaction information and allows users to shield their assets,” it said.
Zcash also saw positive sentiment as enthusiasts pushed it forward as insurance against bad actors using Bitcoin, noting that Zcash may serve as a safer alternative to BTC.
Entrepreneur and AngelList founder Naval Ravikant stated that while “Bitcoin is insurance against fiat, Zcash is insurance against Bitcoin.”
Zcash takes breather
Zcash has steadily risen from a low of $34.48 on Aug. 20, marking a 379% surge if taken from the Oct. 2 high of $163.
ZEC/USD Daily Chart, Courtesy: TradingViewThe rally accelerated on Sept. 28, with ZEC seeing significant rises subsequently. In one of such, on Oct. 1, for instance, ZEC surged over 100% from a low of $74 to $153.
The rise met resistance at $163 on Oct. 2, causing the ZEC price to retreat. At press time, ZEC was down 3% in the last 24 hours to $143, but still up 176% weekly.
Following the surge, Zcash’s daily RSI stepped into the overbought range, currently at 92, which might explain the retreat in price.
The good news remains that bulls have given up much ground, with Zcash attempting a rebound alongside the rest of the crypto market. The next major resistance awaits at $216, while support is envisaged at $80 in the event of a price drop.
Source: https://u.today/zcash-zec-sudden-200-upside-move-stalls-key-reason
