Zcash has risen by more than 80% over the last five days to hit $265, its highest price since May.
The bullish impulse was likely fueled by news that the network will transition to proof-of-stake.
ZEC could now be bound for a spike in profit-taking before the uptrend resumes.
Share this article
Zcash made headlines last week after developers announced the network would move from proof-of-work (PoW) to a proof-of-stake (PoS) consensus mechanism. Although the transition may take up to three years to complete, ZEC has gained significant bullish momentum in the wake of the announcement.
Zcash Is Back in the Green
Zcash is soaring after the development company behind it, Electric Coin Company (ECC), revealed plans to transition to a PoS consensus algorithm.
In a recent blog post, ECC’s CEO Zooko Wilcox made the case in favor of switching the network to PoS. He highlighted the need to decrease the downward price pressure on ZEC from miners and increase the utility of the token. Wilcox argued that PoS would make Zcash “more decentralized, attack- and capture-resistant and egalitarian,” strengthen security, and improve performance.
The transition to PoS could be “achievable within three years,” according to ECC. Still, cryptocurrency enthusiasts appear to have welcomed the news. Zcash has seen its market value surge by more than 80% since the announcement on Nov. 19, going from $146 on Nov. 18 to a recent high of $265 today.
The privacy-coin could be bound for a brief correction before advancing further. The Tom DeMark (TD) Sequential indicator presented a sell signal on ZEC’s 4-hour chart as prices failed to overcome resistance. A spike in selling pressure around the current price levels could help validate the bearish formation, resulting in a retracement to the $227 support before the uptrend resumes.
Zcash/US dollar price chart (Source: TradingView)
Given the rising optimism around Zcash, it would be prudent to watch out for a decisive 4-hour candlestick close above $262. Breaching such a crucial resistance area can boost investors’ confidence and extend the uptrend towards higher highs. ZEC could then surge towards $304 or even retest mid-May’s high of $373.
Disclosure: At the time of writing, the author of this feature owned BTC and ETH.
This news was brought to you by Phemex, our preferred Derivatives Partner.
Share this article
The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
See full terms and conditions.
Electric Coin Company Announces Wallet for Zcash
Today, the Electric Coin Company (ECC), which invented Zcash ($ZEC), a privacy coin, has announced that it will be releasing an ECC wallet. It will also improve the interoperability of…
Twitter Chooses Ex-Zcash Dev to Head Bluesky Project
Former Zcash developer Jay Graber has announced that she will be heading Bluesky, Twitter’s social media decentralization project. Jay Graber Will Lead Bluesky Graber announced on Twitter today that she…
Privacy Coin Zcash Weighing Proof-of-Stake Move
Zcash is considering moving away from the energy-intensive Proof-of-Work consensus algorithm to the lighter, faster, and more eco-friendly Proof-of-Stake, Zooko Wilcox told Forbes. Zcash Founder Says Proof-of-Stake is Proven Zcash…
How Bumper’s Price Protection Helps DeFi Users Earn Yield on Their A…
Is it possible to build a DeFi protocol that counters crypto’s inherent volatility while also letting holders enjoy the upshot of their assets? Bumper Finance is a DeFi price-protection protocol that aims…