- On March 31, Zcash (ZEC) price soared by over 10% on a daily chart, increasing its value from $223 to $248
- The cryptocurrency has soared above $255; however, it quickly faced a correction.
- Zcash is showing fundamental strength, which shows that the current rally in the crypto is not only dependent on temporary hype.
On March 31, the leading privacy coin, Zcash (ZEC), once again gained upward momentum after a small dip in the last week, soaring over 10% on a daily chart.
According to CoinMarketCap, the Zcash (ZEC) price is currently trading at around $248.77 with an over 10% jump in the last 24 hours. A similar jump was also witnessed in its market capitalization, which currently stands at around $4.13 billion. The daily trading volume has increased by 62% and currently stands at around $514.4 million.
Why Zcash Price is Surging Today
On March 31, the cryptocurrency soared above $255, a weekly peak. However, it quickly faced correction at this major resistance level and dipped to around $250 in a few hours.
The buzz on the internet tells that ZEC has witnessed a sharp price increase, where it climbed over 10%. The main reason behind the rally in cryptocurrency is the speculation around ETFs, which has grabbed the attention of investors.
There are many factors backing Zcash’s upward trajectory. According to Coinalyze, the open interest for Zcash has increased significantly, which is a measure of total outstanding derivative contracts. This indicates that the fresh money is entering the market.
On Binance, Zcash open interest surged to $139 million, along with a trading volume, which shows that buyers are in control and creating buying pressure.
Apart from this, ZEC is currently outperforming by more than 9% on a relative basis. This shows that the current rally largely depends on the strength of Zcash instead of only relying on temporary market trends.
While the current bullish momentum in ZEC is strong, the figure for the recent inflow also comes with growing volatility. A major portion of the buying activity is concentrated in derivative markets, where leveraged trades can amplify price movement in both upward and downward directions.
There is also a chance of a pullback from $247 as buyers might start booking profits. If this happens, the ZEC price might face a correction and slip back to the pre-rally zone at around $231. Similarly, if the cryptocurrency manages to sustain the rally, it will create further space for upward movement, which might go for the next price target of $280. However, the leading cryptocurrency, Bitcoin, is still revolving around $66,000.
Zcash (ZEC) Ecosystem Grows with Institutional Backing and New Developments
Since the beginning of this year, the Zcash ecosystem has been witnessing a rapid expansion and growth, thanks to the growing demand for privacy-based cryptocurrency. The formation of the Zcash Open Development Lab (ZODL) is one of the major developments. ZODL secured $25 million in seed funding from the top investors, including Paradigm, a16z crypto, and Coinbase Ventures.
This fresh capital is likely to be used behind the protocol development, interoperability improvements, and the evolution of privacy tools like the Zodl self-custodial wallet.
Also, it has already witnessed a surge of over 400% in shielded pool activity. Shielded transactions are being used to hide the sender and receiver by using zk-SNARKs. This feature has helped it to boost network activity.
In the latest official report, Grayscale analyst Michael Zhao said that “Zcash is nearly 10 years old, but may be entering a new chapter. Use of its shielding technology is increasing, and new capital is entering the ecosystem to support wallet development and Zcash mining.”
Also Read: Bitcoin Cash Price Shows Recovery as $BCH Targets $485 Breakout
Source: https://www.cryptonewsz.com/zcash-zec-price-soars-10-privacy-narrative/
