Zcash approaches $700 as buying pressure builds

Key takeaways

• ZEC is up 12% in the last 24 hours, making it the second-best performer in the top 10.
• The coin could rally past the $700 mark in the near term. 

ZEC rallies as broader crypto market underperforms

ZEC, the native coin of the Zcash ecosystem, is up 12% in the last 24 hours, making it the second-best performer among the top 20 cryptocurrencies by market cap.

The rally allowed ZEC to hit the $692 mark earlier today, adding 26% to its market cap so far this week.

ZEC’s rally over the past few days comes as regulatory clarity for ZCash has improved following the U.S. Securities and Exchange Commission’s announcement closing its investigation into the Zcash Foundation. 

The Zcash Foundation also reported holding approximately $36.7 million in liquid assets, mostly in ZEC, according to its Q1 update. Core technical development continues on the Zcash protocol despite organizational changes at the Electric Coin Company.

Zcash technical outlook: ZEC targets higher resistance levels above $700

The ZEC/USD 4-hour chart is extremely bullish as Zcash has only been outperformed by Hyperliquid over the last seven days. 

At press time, ZEC is trading at $655 after hitting the $692 level. The momentum indicators are extremely bullish, suggesting that the buyers are in full control. 

The RSI of 70 means that ZEC is now in the overbought region. The coin could undergo a correction, but the current momentum remains bullish. The MACD lines are also within the overbought territory.

If the rally continues, ZEC could extend its gains past $700 and hit the $745 resistance level for the first time since November. An extended rally would allow ZEC to target the $800 psychological level.

However, if the market undergoes a correction, ZEC could retest the $580 low created on Wednesday. 

Failure to defend this support level could expose ZEC to lower demand zones around $485.