Privacy coin Zcash’s (ZEC), which is a privacy-focused cryptocurrency, has exhibited a classic bullish reverse pattern. This could cause its price to rise above $1,000 over the coming weeks.
Takeaways:
- ZEC’s setup of cup-and handle suggests that the price could rise to $1,091 as early as June or even July.
- ZEC is the leading privacy coin, up 73% on the month over crypto.
ZEC to rise by 55% on the back of privacy story
The ZEC/USD pair appears to have formed a cup-and-handle (C&H) pattern, marked by a rounded recovery phase followed by a downward-sloping consolidation.
The price breaking above the neckline is usually interpreted by traders as a bullish structure, because it indicates the buyers have now absorbed and taken back control from the previous supply barrier.
To calculate the upside target of a pattern, measure the distance from the cup’s bottom point to the neckline and add that measurement to the breakout height.
ZEC/USD price chart for three days. TradingView
ZEC entered the pattern on Tuesday “handle” stage while eyeing a breakout above the neckline resistance at around the $625–$650 area.
Zcash’s decisive close above the neckline may send its price toward $1,091 by June or July, up about 88% from current prices, if the C&H structure plays out as intended.
This target’s upside is aligned to ZEC’s Fibonacci 1.618 extension drawn from $745 swing-high to $185 swing-low.
ZEC has outperformed the cryptomarket in May
ZEC is up 18% on the market in just three days, while other markets have fallen by 3.45%. argue Zcash has been dubbed the “effective currency” “running its own bull market.”
Source:
Privacy coins, as a whole, have performed better than the overall crypto market in the last month. ZEC, which gained more than 73% in the past month, led this trend, with other tokens that are privacy focused, such as Monero and Dash, also rallying.
Comparatively, total crypto-market capitalization increased by just 0.2% in the same time period. This suggests that the movement is sector-specific rather than market-wide.
Source: TradingView.com. ZEC/USD performance compared to XMR/USD and DASH/USD. TradingView
Zcash is gaining in popularity as a result of the increased need for privacy and anonymity.
Related: Zcash gains 70% in a week amid growing interest in crypto privacy
Last week, the bullish argument gained more traction after BitMEX founder Arthur Hayes spoke out. said ZEC could reach 10% the market cap of Bitcoin (BTC) in a few years.
Based on ZEC’s current supply, about 16,68 million tokens are in circulation.
ZEC’s BTC price has risen by approximately 20.50% from Hayes’s comments.
ZEC/BTC Daily Chart TradingView
The mood improved earlier in May. Multicoin Capital disclosed Zcash exposure ZEC rallied after Robinhood added the token to their platform, adding new institutional and retail access catalysts.
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Source: cointelegraph.com
