Zcash [ZEC] The privacy token has attracted renewed interest over the last day.
During the broader turmoil on the stock market, the asset dropped sharply. On the 5th of July it fell to near $250 as fears grew over an important bug in Orchard’s shielded pools.
It is possible that this could have been allowed unlimited counterfeit ZEC The coinage.
Price has now recovered, rising as high as 470 dollars in the morning hours.
Support ZEC with Spot Demand
The price recovery of ZEC is being driven by a significant increase in demand for Spots between 8th May and press time.
ZEC’s net flow was $17.23m, against a sales total of approximately $284m.
However, sentiments have since changed and netflow has turned into net-buying of $118.13million, with an additional $5.7million in net-buys to continue to boost buyers.
In the first eight hours of trading, the total amount of purchases was $99,000. This is a minimal figure and does not reflect the full session.
ZEC would be able to increase its profits if it could continue buying at a higher rate than the selling pressure, especially while the market is still recovering. After the large capital withdrawal between 1st June and 6th June, around $84.02 billion returned to the market.
ZEC hashrate rises as miners commit more power
Zcash’s mining hashrate has surged over the past 24 hours, climbing 10.6% to an estimated solution rate of 17.80 GSol/s — though that remains slightly below the previous day’s high of 19.68 GSol/s.
A rise in hashrate can indicate that more miners have committed resources to improving their computational strength. It does not always indicate a positive outcome. The interpretation of the hashrate will determine its future direction.
The price movement suggests that retail investors read this as a positive development. And community sentiments have risen significantly in the last few days.
Over 175,000 votes were cast during the day to indicate a more bullish sentiment among investors.
The negative funding rate keeps the downside risk at play
ZEC’s value could fall if the funding rate continues to be low.
As of the date of this article, the Funding rate has turned negative. It is now reading a value of approximately -0.0700%. The Funding Rate is negative, which means that the ZEC futures traders prefer shorts to longs.
ZEC could lose its price momentum if this happens. ZEC’s price could rise to $500 if buyer dominance increases.
Final summary
- ZEC’s price has risen to as much as $470 in the past 24 hours after the market bottomed out at $250.
- Futures traders continue to bet on the fall of ZEC, despite its recent rebound. This keeps some downside risks in play, even as buyers move towards $500.
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Source: ambcrypto.com
