Surges 6% Amid Regulatory Pressure…Zcash is Moving Again

▲ Zcash (ZEC)/AI generated image ©

As regulatory pressure intensifies, privacy coins are gaining renewed attention, with Zcash surging over 6% in a single day, drawing significant market interest.

According to CoinMarketCap, a cryptocurrency market tracking site, on May 4 (local time), Zcash (ZEC) recorded a 6.69% increase over 24 hours, reaching $412.97. Unlike Bitcoin, which remained flat during the same period, Zcash showed independent strength, significantly outperforming the market average.

The key background for this surge is the positive remarks from prominent industry figures. Barry Silbert, Chairman of Grayscale, stated that Zcash could serve as a privacy hedge to protect financial independence in an environment of strengthening financial regulations across various countries. The case of Brazil's central bank regulating stablecoins was specifically mentioned, further strengthening the investment narrative for privacy coins.

Ecosystem indicators also supported the price increase. 30% of the total circulating supply is held in shielded balances, showing record-high network utilization, and investment accessibility has improved with the Robinhood listing. Technically, it is trading above its 7-day simple moving average of $356.67, and its 14-day Relative Strength Index (RSI) is 66.89, indicating a strong trend.

In the short term, maintaining the $391.55 support level is crucial. If this price holds, it opens up the possibility of retesting the 127.2% Fibonacci extension line at $434.81, but a break below the support could lead to a retracement to the $383 pivot zone.

Market sentiment remains bullish. However, given the recent large increase, a stable consolidation above $413 with accompanying trading volume is needed, and short-term volatility could increase if profit-taking occurs at higher price levels.

*Disclaimer: This article is for investment reference only, and we are not responsible for investment losses based on it. The content is for informational purposes only