- Zcash (ZEC) rises 1.34% today while keeping its strong weekly gains.
- Volume drops sharply as momentum cools.
- Key support levels near $600 will determine the next direction.
- Analyst Arthur Hayes sees long-term potential driven by rising privacy demand.
Zcash (ZEC) is now showing a mild recovery, rising 1.34% over the past 24 hours. Even with this rebound, the token still holds a strong 32.72% weekly surge, highlighting the solid momentum it carried before cooling off.
At the moment, ZEC is trading at $600.27. Its 24-hour trading volume has fallen 28.59% to $1.64 billion, while the project’s market capitalization sits at $9.81 billion, reflecting a 1.73% pullback over the same period.
Also Read: Zcash (ZEC) Eyes $749 Target as Whale Activity Sparks Bullish Momentum
Price Outlook Hinges on the $600 Support Zone
The chart previously signaled a possible move higher, but with the current market value being close to $602, there is a shift in the market outlook. Entering into a loss below the support level at $615 changed market sentiment from being optimistic to being cautious. This region was acting as support for the bullish formation in the market.
The zone between $600 and $605 has now become the key area to watch, as it has served as a previous bounce point. If buyers reappear, there could be a short-term bounce, but this will not mean much until the region below $615 is regained. A break could result in a move to 595, 585, or lower levels.
If momentum is to reverse to bullish, ZEC will have to return above $615, pushing past $630 and then $655. Until then, the bias for market sentiment will remain in favor of weakness in prices rather than any chances for recovery. Price action in the region of $600 will provide more indications on market bias.
Analyst View Highlights Long-Term Potential
Arthur Hayes thinks Zcash is one of those few projects in the crypto space that could see some appreciation, no matter what happens to market conditions regarding liquidity. According to him, its primary emphasis on anonymity, coupled with its small supply, could enable it to perform in isolation from other markets.
Hayes also suggests that ZEC could eventually reach around 20% of Bitcoin’s value. Using the market value of Bitcoin at the time, Hayes expects ZCash to be valued at about 18,200. Of course, with increasing popularity for private, security-protecting cryptocurrency, Hayes sees ZCash becoming one such destination.
Also Read: Zcash (ZEC) Technical Analysis Shows Path Toward $1,000 Resistance Level
