Zcash (ZEC) continues to defy the broader market trend. The privacy cryptocurrency has broken its previous May 2021 high, reaching its highest level in seven years. This rally has fueled a growing wave of bullish Zcash price predictions. The altcoin is up 57% in the last week alone, according to market data.
The momentum has pushed ZEC past the barrier of its previous all-time high from May 2021. However, technical indicators suggest caution. The RSI has entered deep overbought territory (84), a level that often precedes local corrections. Likewise, the MACD histogram is showing its second-widest lead above the signal line since 2017. This reflects short-term speculative euphoria over steady accumulation.
The “privacy coins” narrative has gained relevance in the current cycle. Institutional use-cases need rails that offer privacy, yet also allow for selective disclosure to comply with regulations. Furthermore, backing from key opinion leaders in the digital economy has amplified attention on ZEC. This is happening while other projects remain quiet amid U.S. macro uncertainty.
Is Market Euphoria Outpacing Real Zcash Adoption?
Despite the optimism, the scales may have tipped towards speculation. Data from the zkp.baby platform indicates the total shielded supply of ZEC has plateaued since October 23. Meanwhile, the price has gained 140%. This behavioral shift suggests new entrants are not shielding their funds to hold, but rather speculating. The $500 psychological level remains a critical take-profit zone.
Although the breakout from a year-long symmetrical triangle pattern suggests upside potential, a short-term correction seems the more likely next move. This could shake out weaker hands and strengthen the longer-term uptrend. Nonetheless, for ZEC to achieve a 2x move to $1,000, it will likely need another major catalyst. An example would be a new avenue for institutional demand, like the Grayscale Zcash Trust.
