Zcash (ZEC) is showing signs of weakening after another failed attempt to break through a major resistance area, while new ecosystem developments continue to strengthen the Zcash price’s long-term outlook.
The market analyst, Aman, mentioned a potential pattern of double tops on the daily chart. This analyst stated that the lack of momentum, together with the falling RSI, could lead to further selling pressure in case of a break of the trendline support.
The Zcash price is currently at the level of $385 after pulling back from the resistance range of $520-$550. The Zcash price had earlier rallied from below $100 to as high as $750 before reversing.
Source: X
An attempt at a second rally ended unsuccessfully against the same resistance level, making it likely that the Zcash price chart could be forming a double top formation.
The price level has now dropped to test the upward-sloping trend line, while a breakdown could see the Zcash price drop to the $300 level or even lower. The RSI has now dropped to about 39 levels.
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Optimistic Long-Term Outlook Despite Near-Term Weakness
Even though the technical forecast is less favorable, some investors have remained bullish on the prospects of Zcash.
According to Ansem, Zcash is worth more than Bitcoin because it is more private and resistant to quantum computers, noting that many supporters of Bitcoin were also supporters of Zcash.
The opinion was shared by Tommy Famous, who claimed that Zcash had certain technological advantages in comparison to Bitcoin due to its privacy and quantum resistance.
Nevertheless, he believed that Zcash may fall below $200 prior to entering the next market cycle, even though it is expected to be traded for more than $1,000 in the future.
Source: X
Sovright Launches Recovery Tool for Early Zcash Users
Apart from the price movement, there has been a practical improvement on the Zcash platform as a result of Sovright, the non-profit organization that took over from the Electric Coin Company.
According to the reports, Argos is one such product that was developed to help users get back ZEC that was stuck in the defunct ZEC Wallet Lite. As per Executive Chairman Michelle Lai, the problem occurred because quite a lot of money was stored in shielded addresses by early and long-term users of Zcash.
Michelle Lai said:
They’re not glamorous, but they’re often important problems to solve. Sovright was created to tackle exactly these kinds of challenges. strengthening the ecosystem in a variety of ways.
It also recently launched the Sovright Mining Pool on testnet, which is designed to help reduce the concentration of mining and increase the resilience of the network. Collectively, all of these efforts target issues that have plagued the Zcash ecosystem for many years.
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
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