Zcash price has been struggling to find a clear direction in recent weeks, despite an increase of more than 600% in the last 3 months. The token is moving sideways, while other parts of the crypto market are trying to make small recoveries.
This is happening as Zcash is gaining new attention from a well-known voice in the crypto world. In a recent interview, Arthur Hayes spoke positively about the design of Zcash.
Yet, the ZEC price remains cautious, despite an increase of nearly 4% day-over-day. Traders are now uncertain whether this support is important in the short term, or if the charts will determine it first.
Arthur Hayes says this about the privacy model
Arthur Hayes is a co-founder of BitMEX and a well-known figure in the crypto market. In a recent conversation with Kyle Chasse, Hayes explained how his opinion on privacy coins has changed over time.
He said that Monero was once seen as the strongest privacy option, but that new data and updates have changed his thinking. Hayes emphasized the progress of Zcash, especially in the area of shielded transactions and cryptographic improvements.
"That is one of the reasons why I moved from the Monero team to the Zcash team when it comes to privacy coins," he said, 30 minutes after the start of the interview.
It is mainly about the context here. Hayes did not talk about price targets for Zcash. He did not say that buyers should step in now. His remarks were about technology and design, not about the right time to buy or sell.
That difference explains why the price has not reacted yet.
Why the Zcash price has not reacted yet
Despite the attention from Arthur Hayes, the Zcash price has barely moved. The cause can be seen on the chart.
First, a bearish EMA crossover is forming. EMA stands for exponential moving average. This shows the average of the price, but recent price fluctuations weigh more heavily.
If the 20-day crosses below the 50-day, it usually means that sellers are stronger than buyers in the short term. At this moment, the 20-day EMA is very close to a drop below the 50-day. This keeps traders cautious.
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Secondly, on-balance volume (OBV) does not help the price. OBV looks at whether volume is flowing in or out. Between December 12 and December 18, the Zcash price fell and the OBV weakened as well. This shows that buyers are not yet providing extra strength. Without rising OBV, rallies usually fail, and often declines do not reverse.
Everything together makes the picture clear. The EMA crossover warns of short-term pressure. OBV shows that buyers are not following much. Therefore, the Zcash price hangs and waits for a clear direction.
Arthur Hayes' remarks provide confidence for the long term, but the charts make it clear that traders are waiting for technical signals. As long as buyers do not step in with volume, the price is likely to remain uncertain.
What could determine the next Zcash price movement
Large cash flows provide the clearest signal. The CMF, or Chaikin Money Flow indicator, rose between December 11 and December 18, while the ZEC price fell. This pattern means that larger holders are showing interest, even as prices remain low.
Nevertheless, the CMF is still below the zero line. That is important. A rise above zero often confirms real purchases. In the past, for example, in early November, the price followed strongly as soon as the CMF broke that level.
For Zcash, the levels are clear. A clear daily close above $434 shows that buyers are taking the lead again. If that happens, the next important zone will be around $516.
At the bottom, $371 is the first important support level. If the price drops below that, sellers can push the price further down towards $301, where there was previously buying interest.
