In the last 30 days, the cryptocurrency Zcash (ZEC) gained 90% in value, becoming one of the top three performing altcoins. In mid-July, ZEC was trading at $23.81, and it has now risen to $41.36. This increase also boosted Zcash’s market value from $360.68 million to $625.72 million. However, the sustainability of this rise seems questionable.
Trading Volume Dropped and Investor Interest Declined
The privacy coin Zcash has seen a significant drop in trading volume in recent days. On August 10, the volume was over $145 million, but it has since dropped by 44.99% to $79.66 million. Generally, an increase in price accompanied by an increase in trading volume is a bullish sign.
However, if the volume decreases while the price continues to rise, it indicates that the bulls are losing control, and the price risks a short-term decline. If the trading volume continues to fall, the price of the cryptocurrency Zcash could drop below $41 in a short time.
Zcash Technical Analysis and Future Price
Zcash’s rise began in July, climbing from below $18 to $34.75 during this period. However, after reaching this level, it was rejected and fell to $25.43. With the bulls regaining strength, ZEC rose to $42.97.
However, with this rapid rise, ZEC entered the overbought zone with an RSI (Relative Strength Index) value reaching 77.02. According to technical analyses, this indicates that ZEC risks falling to $37.18 in the short term. However, a bounce from this level could prevent a new decline, and ZEC could surpass $42.97 to test the $44 region.
While the altcoin Zcash has shown a rapid rise recently, technical data and declining trading volume suggest that this rise may end in the short term. Investors should closely monitor this process, as ZEC’s price movements will provide important clues. The potential support at $37.18 will be critical for the future price direction.
