ZEC, the native token of privacy-focused protocol Zcash, has surged by 23% in the past 24 hours, making it the crypto market’s top gainer. It has outperformed major assets like Bitcoin and Ethereum, which rose by 1% and 3%, respectively, during the same period.
Currently trading at a two-year high of $56.93, ZEC appears poised for further growth. Here’s why.
Zcash Rallies, Thanks to Tornado Cash
ZEC’s double-digit rally mirrors the broader uptick in the values of privacy tokens over the past 24 hours, driven by a landmark US federal appeals court decision.
The court struck down Treasury Department sanctions on Tornado Cash, a crypto-mixing service previously targeted by the Office of Foreign Assets Control (OFAC) in 2022 for allegedly facilitating illicit activities.
The ruling found that OFAC overstepped its authority, emphasizing that Tornado Cash’s immutable smart contracts do not qualify as “property.” Since this ruling, the market capitalization of top privacy tokens has risen by 4%.
ZEC Reacts Positively
As of this writing, ZEC trades at $56.93, a price it last touched in October 2022. This surge has been accompanied by a significant uptick in trading activity, with volume reaching $175 million over the past 24 hours — marking a 68% increase.
When an asset’s trading volume climbs alongside its price, it indicates strong market interest and heightened activity among buyers and sellers. This combination suggests a sustainable price rally. The increased trading volume reflects greater liquidity inflow and widespread participation in the market rally.
ZEC’s Aroon Up line on the daily chart confirms the strength of its uptrend, currently standing at 100%. The Aroon Indicator measures trend strength and direction by tracking the time since the highest high (Aroon Up) and the lowest low (Aroon Down) within a specific period.
An Aroon Up value of 100% indicates a recent new high, signaling strong upward momentum. In ZEC’s case, the Aroon Down line is at 7.14%, reflecting minimal downward pressure and further supporting the bullish trend.
ZEC Price Prediction: A New High on the Horizon?
If the current rally persists, the ZEC token price will establish support at $57.20. Successfully achieving this may propel its price toward $66.98, a level it last reached in September 2022.
However, if profit-taking activity commences, the ZEC token price may fall to $49.29.
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