Can ZEC Token Price Sustain Its Rally?
ZEC, the native token of privacy-focused protocol Zcash, has surged 23 percent in the past 24 hours, making it the top earner in the crypto market. It outperformed major assets like Bitcoin and Ethereum, which rose 1% and 3%, respectively, over the same period.
Currently trading at a two-year high of $56.93, ZEC looks set for further growth. Here's why.
Zcash Rallies, thanks to Tornado Cash
ZEC's double-digit rally reflects a broader shift in privacy tokens over the past 24 hours, following a ruling by the US Federal Court of Appeals.
The court previously imposed Treasury Department sanctions on Tornado Cash, a crypto-mixing service targeted by the Office of Foreign Assets Control (OFAC) in 2022 for facilitating illegal activities.
The court ruled that OFAC overstepped its authority, emphasizing that Tornado Cash's immutable smart contracts did not qualify as “assets.” Since this decision was made, the market capitalization of top privacy tokens has increased by 4%.
ZEC responds positively
At the time of writing, ZEC is trading at $56.93, a price it touched at the end of October 2022.
When a property's transaction volume increases along with its value, it indicates strong market demand and high activity among buyers and sellers. This combination suggests a sustained price rally. The increased trading volume indicates higher liquidity and greater participation in the market rally.
ZEC's Aroon Up line confirms the bullish strength on the daily chart, currently at 100%. The Aroon indicator measures the strength and direction of a trend by tracking the time between the highest high (Aroon Up) and the lowest low (Aroon Down) over a period of time.
A 100% share of Aaron's app price indicates a recent high, indicating upward momentum. In the case of ZEC, the Aaron's Down line is at 7.14%, which reflects a lower downward pressure and further supports the bullish trend.
ZEC Price Prediction: New High on the Horizon?
If the current rally continues, ZEC token price will establish support at $57.20. Successfully achieving this could push the price to $66.98, a level reached by the end of September 2022.
However, if the profit-taking activity starts, the price of ZEC token may drop to $49.29.
Disclaimer
In accordance with Trust Project guidelines, this price analysis article is for informational purposes only and should not be construed as financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always do your own research and consult with a professional before making any financial decisions. Please note that our terms and conditions, privacy policy and disclaimer have been updated.
