Zcash price prediction as ZEC surges and why it may crash soon

Zcash price has staged a strong comeback this month, leading to a substantial short ￰0￱ ZEC token has jumped from a low of $34 in August to $280, a 710% increase surge that has pushed its market capitalization to almost $4 ￰1￱ and Grayscale are driving the Zcash rally Zcash is a top cryptocurrency in the privacy space, where it competes with the likes of Dash and ￰2￱ does that by having two types of transactions: transparent and ￰3￱ transactions are similar to Bitcoin in that they are available on a public ledger, while the shielded ones use zero-knowledge (zk) to ensure that transactions are ￰4￱ shielded transactions, information on the amount of money being sent and the addresses of the senders and recipients are keep hidden from the public ￰5￱ Zcash price has been in a strong uptrend since last year when Grayscale announced the launch of a fund tracking the ￰6￱ fund will allow American investors to invest in it, and possibly opens the door for a spot ZEC ETF ￰7￱ Zcash price has also jumped as that announcement triggered Fear of Missing Out (FOMO) among investors, which explains why it has continued ￰8￱ shows that the daily volume jumped by 90% to $1.4 billion, while the futures open interest soared to a record high of over $350 ￰9￱ price has jumped because of the ongoing liquidations of short ￰10￱ liquidations soared to $6.7 million on Friday from $4.69 million on the previous day.

Altogether, shorts liquidations worth over 50 million has happened this ￰11￱ Zcash price rally has been notable as it happened in the same week that the crypto market crash ￰12￱ shows that the market capitalization of all coins has plunged by over $200 billion this ￰13￱ price technical analysis Zcash price chart |) continued to drop as the volatility ￰14￱ accumulation phase is then followed by the markup, which is characterized by high demand and a parabolic ￰15￱ is also characterized by the Fear of Missing Out (FOMO) among investors. Therefore, there is a risk that the ZEC price will crash as soon as it enter the markdown and the distribution phases.

Besides, data shows that the coin has become highly overbought, with the Relative Strength Index (RSI) jumping to 80 and the Stochastic moving to nearly 100. A crash will likely bring the ZEC price to the important support level at $150, which is about 40% below the current ￰16￱ could also plunge below $100 as profit-taking intensifies.