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Zcash (ZEC), the privacy coin, has made a bold comeback in price outlook at a time when the broader cryptocurrency market is struggling. ZEC outpaced the crypto market, which is down by 0.46%, after jumping 12% to overcome its recent volatility.
Technical indicators signal short-term rally for ZEC
CoinMarketCap data reveals that Zcash is changing hands at $429.95, which represents a 12.49% increase in the last 24 hours. The coin previously soared from a low of $383.09 to an intraday peak of $434.46 before settling at the current price.
The surge in price came as the asset witnessed short-term capital rotation into privacy coins amid Bitcoin’s dominance. It appears that traders are leaning toward privacy as regulatory uncertainty lingers on the broader financial market.
This could impact the long-term momentum of Zcash. The asset might not be able to sustain this uptick if Bitcoin regains its upsurge in the market.
Additionally, Zcash’s technical chart reveals that holders are reacting to ZEC’s oversold conditions.
Notably, the Relative Strength Index (RSI) is at 44.83, setting up short-term bullish conditions. How long this will last might depend on investors’ engagement with ZEC.
The trading volume has dipped by a significant 14.58% to $704.47 million despite the jump in price. This suggests that some investors remain cautious and unwilling to bet on a sustained rally.
Despite this caution, institutional interest in Zcash continues to gain traction. This comes as Grayscale recently filed to convert its trust into a spot Zcash exchange-traded fund (ETF).
The development signals that the privacy coin appears to be gaining wider appeal even in the traditional finance space.
ETF hopes and rising search interest boost Zcash visibility
It is worth mentioning that, on the crypto market, Zcash has been impressive in its price outlook.
This is particularly evident given the fluctuations in the sector. Nonetheless, ZEC has continued to shine and emerged as a top performer among the top 100 crypto projects.
This bullish outlook has made it one of the most searched cryptocurrencies on a major exchange. According to Coinbase, Zcash searches totaled 52,000, flipping Bitcoin and XRP with 41,000 and 39,000, respectively.
Other crypto assets that gained investors’ attention were Solana, with 20,000 searches; Ethereum had 16,000, and Dash had 13,000.