Zcash has rapidly become a focal point in the cryptocurrency market. Following a significant surge in October, the ZEC price is currently trading around $335, a substantial increase from its levels just weeks prior. The narrative surrounding privacy in cryptocurrencies is experiencing a resurgence, with Zcash at the forefront.
Fundamental factors are also contributing to this renewed interest. The Zcash shielded pool has reached 4.5 million ZEC, representing approximately 28% of the total supply. This indicates that the demand for privacy features is not merely speculative but is demonstrably growing.
Despite ongoing discussions within the crypto community regarding ZEC's supply integrity, its upward momentum has remained unhindered. With a remarkable 380% increase during October, ZEC has solidified its position as one of the top-performing assets of the month.
ZEC Price Chart Analysis
The 4-hour chart illustrates a period of consolidation following a significant breakout. The ZEC price experienced a strong upward trend throughout late October, reaching a local peak near $374 before a period of cooling. Currently, it is retesting the breakout level, holding above the $320 support zone.
The price action continues to exhibit higher highs and higher lows, suggesting that buyers maintain control of the market. This phase appears to be a healthy reset rather than an indication of a trend reversal.
If ZEC maintains its position above this range, it is likely that bullish traders are preparing for another push towards the $400 mark. The current market structure does not suggest panic; instead, it reflects a period of patient accumulation.
Market Indicators
The Relative Strength Index (RSI) has retreated from overbought conditions near 80 to mid-range levels. This cooling-off period provides bulls with additional room for upward movement without an immediate risk of a momentum-driven sell-off.
Open interest remains elevated. However, a notable reduction around October 11 suggests that less committed investors may have been flushed out, contributing to a more stable rally in the current phase.
The Moving Average Convergence Divergence (MACD) indicator shows a weakening trend but remains above its signal line, indicating that the bullish bias is still intact. While momentum is slowing, it has not yet turned negative.
Net long positions continue to outweigh short positions, indicating that leveraged trading activity is still tilted towards potential upside continuation.
ZEC Price Outlook for November
Should the market sustain its position above the $320 support level, the next significant resistance zone is anticipated to be between $380 and $400, where previous upward momentum encountered resistance. A decisive breakout above this range could potentially lead to a rapid extension towards $450 and beyond, especially if liquidity gaps from earlier price declines are filled.
Conversely, a breach below the $320 support level could trigger a pullback towards the $285 mark, an area where buyers previously intervened. Such a scenario would only become a cause for concern if the ZEC price were to fall below $250, which would signal a weakening of the established bullish structure.
November is shaping up to be a month of continued upward movement for ZEC, rather than a significant downturn. The global demand for privacy-focused cryptocurrencies is on the rise, and ZEC is effectively capitalizing on this trend with strong conviction.
As long as buyers continue to defend current support levels, the path of least resistance for ZEC price appears to remain upward. A retest of the $400 level does not seem improbable in the near future.