Bitwise Asset Management has applied for the creation of 11 new altcoin exchange-traded funds. This marks an increased level of interest by institutions to invest in something that is not necessarily an investment in either Bitcoin or Ethereum. They are developing products that are linked to DeFi tokens, layer-1 blockchain tokens, and AI tokens.
Source: Justin Wu
Among the filings, however, Zcash is one of the noticeable inclusions in terms of its support for privacy-focused blockchain technology, and this is an indicator that Bitwise is open to supporting technologies that incorporate privacy. This is considering that ZEC has the capacity to conduct secret transactions owing to the use of zero-knowledge proofs.
Also Read: Zcash (ZEC) Price Outlook: Why $560–$610 Could Trigger the Next Big Move
ZEC Rally Faces Crucial $550–$600 Resistance Zone
However, the crypto analyst, Crypto Patel, pointed out that Zcash had an immense 50% drop from the $700-$750 levels to $300 and enabled people to make profits from the shorting of the same and protected people from the temptation of buying the highs. Also, after testing the $300 levels, it had an incredible rise to the $500-$550 levels, which indicated an 80%+ recovery.
Source: x
The key level of resistance is currently between 550 and 600, making this a level of high significance for profit-taking or shorting. A close above 720 on the high timeframe would negate this bearish scenario, although there is still a high level of risk. In regard to ZEC’s move from 20 to 750, chances are that most of this profit has been taken, making a long position highly speculative. A break below 200 is still a possibility.
ZEC Technical Outlook Suggests Ongoing Momentum
ZEC is still holding a strong position within the current weekly trend after a strong breakthrough above the long-term consolidation range. Price is currently trading around $504, after reaching a high around the $550-$560 range, which has now become the immediate level of resistance. Overall, the overall trend is still bullish, since ZEC is well above all major moving averages, and the MA ribbon is fully stacked.
Source: TradingView
The momentum indicators encourage a healthy consolidation instead of a reversal. The RSI has retreated to 63 from overbought regions to allow continuation. The MACD is still positive with momentum slowing as the histogram bars get closer. As long as the price is above the $400-420 zone, it’s likely a corrective pullback with upside continuation on a strong close above $560.
Also Read: Cypherpunk Technologies Buys $29M in Zcash, Boosts Holdings to 290,062 ZEC Toward 5% Goal
