Zcash has broken out of a downtrend, surging over 1000% before a 45% correction, sparking speculation among investors about the end of the bull run. Despite this, technical indicators hint at a possible new uptrend, aiming for highs beyond current levels.
Zcash experienced a major technical turning point last week. After a 45% drop, ZEC broke through the resistance of its descending channel, a structure that had weighed on the price since mid-January. This breakout follows a successful retest of the pennant support, forming a higher low typical of bullish continuation. The consolidation observed in recent months now appears to be a healthy correction rather than a lasting trend reversal.
In a context where macroeconomic concerns have overshadowed privacy coins, Zcash’s fundamentals remain solid. Institutional demand for privacy and compliance remains intact, which could reignite interest in projects focused on data protection. On the technical front, signals are starting to align: the RSI near 50 reflects a fragile balance, while the MACD is approaching a golden cross, a classic signal of a bullish reversal.
If the bullish pennant validates, the theoretical target of $4,750, representing approximately +1,000% from current levels, becomes conceivable. To achieve this, ZEC must first break through its major resistance at $745, corresponding to its former all-time high. A clean breakout with volume would open the path to price discovery where each threshold could become a new psychological support, thereby reinforcing the bullish momentum.
Such a target does not rely solely on technicals. The narrative around privacy coins will need to regain relevance in a market currently dominated by Bitcoin and alternative layer-1 blockchains. Institutional interest, through products like the Grayscale Zcash Trust or a potential ZEC ETF, could act as a catalyst by facilitating market access. The key question remains whether Zcash will establish itself as an essential solution in the digital economy.
Zcash’s unique positioning represents a significant strategic asset. Thanks to zk-SNARKs, the network enables transaction validation while preserving privacy and offering selective transparency. In a context where companies seek to reconcile regulation and protection of their financial flows, this capability represents a significant advantage over transparent blockchains like Bitcoin or Ethereum.
The realization of the bullish scenario toward $4,750 will therefore depend on an alignment between technicals and fundamentals. If Zcash manages to become the institutional reference for privacy, its valuation potential remains considerable. In the meantime, the descending channel breakout and the current market structure suggest that the 45% correction may have been merely a pause before a new bullish impulse.
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