Zcash (ZEC) Jumps 25% Daily, Fueling Predictions of a Push Toward $700

The cryptocurrency market has staged a strong rebound over the past 24 hours, with Zcash (ZEC) being among the top performers.

Certain analysts believe the privacy coin has more upside potential, predicting it may pump to multi-month peaks in the near future.

How Much Higher?

The recently announced two-week ceasefire between the United States and Iran has acted as a major catalyst for the broader crypto sector. Bitcoin (BTC) briefly reclaimed $72,000, whereas altcoins like ZEC soared by double digits.

As of this writing, the latter trades at around $330 (per CoinGecko’s data), representing a 25% daily increase. Its market capitalization exceeded $5.5 billion, making ZEC the 21st-largest cryptocurrency and overtaking Stellar (XLM) along the way.

Numerous analysts on X have spotted the asset’s resurgence, forecasting that this could be the start of a more aggressive rally. The market observer, who goes by as Crypto Catalysts, noted that ZEC has broken decisively above the long-standing $300 resistance, claiming that this ascent signals “the potential start of a new upward cycle.”

“With this key level now cleared, the path looks open for a continued rally, with targets extending toward the $400 range,” they added.

Clifton Fx was even more optimistic, envisioning a triple-digit explosion beyond $700 in the coming days. This may sound a bit too optimistic at the moment, but ZEC has already proven it can post massive gains in a short period.

Recall that the asset was trading below $60 in September last year, but several weeks later, its valuation skyrocketed above $730. Its bull run was likely sparked by Grayscale, which highlighted the privacy coin and reminded investors they can onboard to the Grayscale Zcash Trust.

Later on, it received more fuel from Binance, which introduced the ZEC/USDC perpetual contract with up to 75x leverage. The product enables investors to speculate on the coin’s valuation without owning it and with no expiration date. Such backing from the world’s biggest crypto exchange typically results in a price pump, as it increases liquidity, improves availability, and boosts reputation.

Correction Coming Next?

Despite the crypto market’s revival, the broader picture remains bearish, suggesting ZEC may soon head south. Some important indicators, such as the asset’s recent exchange netflow, reinforce the pessimistic outlook.

Data from CoinGlass show that inflows have surpassed outflows over the past weeks, meaning that many investors have moved their holdings from self-custody to centralized platforms. This, in turn, increases immediate selling pressure.

ZEC Exchange Netflow, Source: CoinGlass

ZEC’s Relative Strength Index (RSI) should serve as another warning. The ratio has climbed into overbought territory at 86, suggesting a pullback might come next. On the contrary, readings below 30 are seen as a buying opportunity.

ZEC RSI, Source: RSI Hunter