Despite a recent rally, Zcash (ZEC) price is at risk of a correction.

The decentralized cryptocurrency (ZEC), which was created to improve privacy in the blockchain sector, has seen its price increase by a staggering 90% in the last 30 days.

This increase makes ZEC one of the top three altcoins. Trading at $41.36, this analysis explains why the coin could not continue its momentum.

The storm is gathering on the Zcash Stellar Rally.

On July 12, the price of ZEC was around $23.81, which means that its current price may have doubled since then. However, that is not the only thing that has changed.

According to CoinGecko, the market price has also increased significantly. On the same day, the cryptocurrency traded around the aforementioned price; The market cap of Zcash was $360.68 million.

For context, market value is the product of price and circulating supply. Although the project has a maximum supply of 21 million – the same as Bitcoin (BTC), only 15.11 million are in circulation. At the time of the press conference, the market capitalization increased to 625.72 million dollars, which shows that the price increase is crucial for this significant jump.

Read more: Top 7 Privacy Coins in 2024

Despite this increase, the rate of ZEC has taken another path. In the year On August 10, the amount of Zcash was more than 145 million dollars, which indicates that there is a lot of interest in the cryptocurrency. But as of this report, the benchmark is down 44.99% to 79.66 million.

Typically, an increase in volume alongside an increase in price indicates greater purchasing power. On the contrary, when the volume decreases in this case, the bulls are losing their dominance, and the crypto price may lose some value. Therefore, if the rate continues to decline, the price of ZEC may drop below $41 in a short period of time.

ZEC Price Prediction: Days Gone, Rebound Continues

The popular ZEC development started in July. During that time, the coin rose from less than $18 to $34.75 on August 3. Moments later, the price declined, dropping to a low of $25.43.

However, with the help of bullish momentum, the coin reached a peak of $42.97. Meanwhile, the Relative Strength Index (RSI) is at 77.02 at press time. RSI is a technical indicator that measures momentum and price changes to determine momentum.

It also tells when cryptocurrency is overbought or oversold. A reading of 70.00 or above means a penny is overbought, while those at 30.00 are oversold. When oversold, the price of a crypto can flip upwards.

So, in ZEC's case, recasting may be next. Using Fibonacci retracement levels – an indicator that helps identify support and resistance, ZEC price may drop to $37.18 in the short term.

Read More: Zcash (ZEC) Price Prediction 2024/2025/2030

However, stepping out of this phase can stop another fall. Instead, ZEC could surpass $42.97 and possibly test the $44 range, especially if buying pressure increases.