invezz.com
The cryptocurrency market has started the week with a slight recovery. After Bitcoin threatened to dip below $38K, it has bounced again to test $40K. This slight uptrend has been mimicked by other coins in the market.
Zcash (ZEC/USD) is among the tokens moving in tandem with the rest of the market. The token has rallied slightly during the past 24 hours. It is trading at $110 at the time of writing after a 4% gain in 24 hours.
Zcash makes a bold uptrend
Zcash has gained from around $104 to reach a 24-hour high of $115. It has dipped slightly from these levels, but the uptrend is still strong.
If the token can push towards higher levels, $115 will be tested again as a resistance level. If it can break through, the token could push higher towards $129. Such an uptrend will mainly occur if the market support grows.
Currently, the market is yet to enter into a strong bullish momentum, and short-term traders are attributed to the majority of trading volumes. Following the slight recovery in price, short-term traders could increase the buying pressure to book profits if the market continues to gain. This could create a strong bullish trend that could push prices past $130.
A Zcash downtrend is looming
While the current market performance makes a case for an uptrend, Zcash is yet to break free from a bear market. With the short-term traders raising the volatility levels in the market, this privacy coin could soon head towards lower levels.
In case of a dip, the price of Zcash will push towards the 24-hour lows of $104. This could trigger the bears to drop prices further below $100. Zcash was the last trading at below $100 earlier this month, and if it makes such a movement again, a stronger bearish trend will be formed.
The dip in Zcash prices is even more likely with the executive order to be issued by President Joe Biden addressing the cryptocurrency sector. Zcash has found itself on the wrong side of regulatory scrutiny over its privacy-focused blockchain.