The price of Zcash has not clearly determined a trend in recent weeks, despite having increased by more than 600% over the past 3 months. This token is currently moving sideways while many other areas of the crypto market are attempting to recover slightly.
The recent wave of interest comes from a well-known figure in the crypto market. In a recent interview, Arthur Hayes spoke positively about the design of Zcash.
However, the price movement of ZEC shows hesitation, even though the token recorded a slight increase of nearly 4% on the day. Now, traders are considering whether this support is truly significant in the short term or if the chart will dictate otherwise.
What does Arthur Hayes say about privacy models?
Arthur Hayes is a co-founder of BitMEX and a prominent figure in the crypto space. In a recent conversation with Kyle Chasse, Hayes shared why his views on privacy coins have changed over time.
He mentioned that Monero was previously seen as the strongest privacy option, but new data and upgrades have made him rethink. Hayes emphasized that Zcash has made significant advancements, especially in shielded transactions and cryptographic improvements.
"That's one of the reasons I switched from the Monero camp to the Zcash camp when talking about privacy coins," he shared at the 30-minute mark of the interview.
The important thing here is the context. Hayes did not discuss a price target for Zcash. He also did not say that people should rush to buy. His comments were solely about technology and design, not about market timing.
This discrepancy explains why the price of Zcash has not shown a clear response.
Why has the price of Zcash not fluctuated yet?
Despite receiving attention from Arthur Hayes, the price of Zcash has not fluctuated much. The reasons are evident on the technical analysis chart.
First is the signal of a forming bearish EMA crossover. EMA is an exponential moving average that places more emphasis on recent price movements.
When the 20-day EMA crosses below the 50-day EMA, it usually indicates that short-term sellers are stronger than buyers. At this point, the 20-day EMA is very close to crossing below the 50-day EMA. Therefore, traders are still cautious.
Want to see more analysis about the token? Subscribe to the daily Crypto newsletter from editor Harsh Notariya here.
Next, the OBV (On-balance volume) indicator also does not support the price. OBV shows the flow of money into or out of the market. From 12/12 to 18/12, the price of Zcash slightly decreased, while OBV also weakened. This means that buyers have not been particularly aggressive. If OBV does not increase, price recoveries often fail, while downturns may continue.
Putting everything together, the current picture is quite clear. The EMA crossover signals short-term bearish pressure. The OBV indicates weak buying strength. This is why the price of Zcash is still struggling to find a clear direction.
Arthur Hayes' comments help reinforce long-term confidence, but the technical charts indicate that traders are still waiting for more confirming signals. Until buyers actually pump more money in, the price will continue to waver without a clear direction.
What could determine the next price movement of Zcash?
Large capital flow is currently the clearest sign. The CMF (Chaikin Money Flow) indicator increased from 11/12 to 18/12, even though the price of ZEC adjusted. This pattern shows that large investors are still paying attention despite the weak price.
However, the CMF is still below 0. This is very important because when the indicator rises above 0, it often confirms actual buying pressure. For example, previous instances in early November showed strong price increases after CMF surpassed this level.
With Zcash, key price levels have been clearly defined. A daily close above 434 USD will indicate that buyers are regaining control. If this occurs, the next resistance area will be around 516 USD.
On the downside, the area around 371 USD is the first support level. If the price falls below this level, selling pressure may increase, pushing the price down to around 301 USD, where buying pressure was previously noted.
