Bull Trap or Major Rally Ahead?

Is ZEC ready to spike above $700?

Many leading altcoins, including Ethereum (ETH), Ripple (XRP), and Solana (SOL), have headed south over the past 30 days, moving in step with the market’s predominantly bearish tone.

However, Zcash (ZEC) has defied the overall pullback, posting a roughly 90% price increase during this period.

How Much Higher?

The privacy coin ZEC was the talk of the town towards the end of last year when its price surged from mere $50 to over $700 in a matter of two months. Back then, though, the entire crypto market was booming (even if Zcash was among the standout performers), whereas the recent surge appears far more unexpected.

Earlier this month, the token’s valuation briefly exceeded $630 before slightly retreating to the current $585 (according to CoinGecko’s data). Its market capitalization neared $10 billion, making ZEC the 14th-biggest cryptocurrency after flipping Cardano (ADA) and Bitcoin Cash (BCH). One factor that could have played a role in the ascent is the overall uptrend in privacy coins, with Monero (XMR) and Dash (DASH) also well in the green on a monthly scale.

Somewhat expected, crypto X is once again rammed with users envisioning further gains for ZEC. CryptoJack, for example, claimed that the asset has broken out of a descending channel, suggesting it could be starting a major move up.

Sjuul | AltCryptoGems and JAVON MARKS also gave their two cents. The former said ZEC looks “pretty bullish” as it’s potentially breaking out of a bull flag. JAVON MARKS noted the token’s strong progress and forecasted a possible rise above $700.

A Desired Correction?

Contrary to the bullish predictions made by the aforementioned market observers, ZEC’s Relative Strength Index (RSI) suggests the asset may cool off in the near term. The technical analysis tool ranges from 0 to 100, with ratios above 70 signaling that the coin is overbought and due for a potential pullback. On the other hand, readings below 30 are often considered buying opportunities. ZEC’s RSI briefly spiked beyond 80, while now it stands at roughly 66.

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Such a correction, though, seems to be something that certain analysts would actually welcome. Altcoin Sherpa, for instance, said they want to hop on the bandwagon should the price drop to $470 or even lower.