Zcash Price Prediction: Soaring To $75 After Big Breakout?

Zcash (ZEC) has been silently climbing the crypto market’s ranks and has once again made it above the $1 billion mark as demand for privacy coins seems to be increasing.

Trading volumes in the past 24 hours have jumped by 68% to $170 million, now accounting for 16% of the asset’s circulating supply.

This is the highest amount of ZEC that has been traded in weeks. Most of the time that volumes surpass $100 million for this token, it results in a bullish move days after.

In the past 30 days, ZEC has delivered gains of 68%, moving from $42 to $67 following a jump above a key resistance level at $55 per coin.

Hashrate Expands by 30% in Two Months for Zcash

Zcash’s history has been plagued by contradictory reports that question the ‘shielded’ nature of its transactions.

This privacy coin should supposedly mask transactions by hiding the wallet addresses of the parties involved. It uses a proof-of-work (PoW) consensus mechanism similar to that of the Bitcoin network.

However, a report from Chainalysis published in 2020 claimed that only 1% of ZEC’s transactions were fully shielded, which put into question the project’s use case.

Nonetheless, the community that supports Zcash believes that users will increasingly turn to privacy coins to hide their on-chain trail as government regulations and taxation of crypto trading is expected to increase over time.

Zcash Hash Rate (12 Months) – Source: BitInfoCharts

Upon dropping to a 12-month low of 6.28 gigahashes in July this year, data from BitInfoCharts shows that the network’s hash rate has been progressively increasing to 8.12 Gh/s at the time of writing.

This implies increasing interest from miners, possibly as a result of crypto’s bull market. As altcoin season begins, PoW-powered chains attract miners looking to reap the highest returns out of their hardware. This hashrate increase seems to be the cause of the latest spike in ZEC’s price.

Resistance Breakout Shows Strong Buying Pressure

Looking at the daily chart, a bullish breakout above $55 seems to have accelerated the token’s rally. Trading volumes ahead and after that move exceeded the 14-day average, meaning that buying interest is rising.

ZEC/USD Daily Chart (Kraken) – Source: TradingView

ZEC’s Relative Strength Index (RSI) has climbed to overbought levels already. This increases the odds of a retrace once the token hits the nearest resistance at $75. A move to this level seems highly likely at this point.

It is hard to tell if the bull run will push ZEC to $100 or stop there. However, the market will probably take a breather at that point and pull back to the $60 level at least.

This would give late buyers a second chance to enter a long position at a much more decent price if they expect a continuation of the rally.

ZEC once reached a market cap exceeding $3 billion. Currently sitting at $1 billion, this token offers significant upside potential if those golden days are back.

As altcoin season begins, dormant projects like these could deliver surprising gains if positive momentum gains enough traction and creates some FOMO.