The price of Zcash has struggled to find a clear direction over the past few weeks, despite rising more than 600% over the three-month window. The token is moving sideways even as other parts of the cryptocurrency market attempt small rebounds.
This comes despite new interest from a prominent voice in the cryptocurrency space. In a recent interview, Arthur Hayes spoke positively about Zcash's privacy model.
However, the movement of ZEC's price shows hesitation despite a near 4% rise day after day. Traders are now weighing whether this support is important in the short term or if the charts will decide first.
Arthur Hayes said this about the privacy model.
Arthur Hayes is the co-founder of BitMEX and a well-known figure in the cryptocurrency market. In a recent interview with Kyle Chass, Hayes explained why his view on privacy coins has changed over time.
He said that while he previously viewed Monero as a strong privacy option, new data and upgrades changed his thinking. Hayes highlighted Zcash's advancements, especially in shielded transactions and improvements in encryption.
"This is one of the reasons I moved from the Monero camp to the Zcash camp when we talk about privacy coins," he said after 30 minutes into the interview.
What matters here is the context. Hayes did not talk about Zcash price targets. He did not say that buyers should rush in quickly. His comments focused on technology and design, not market timing.
This distinction explains why the price hasn't reacted yet.
Why hasn't Zcash Price reacted yet?
Despite Arthur Hayes's interest, Zcash's price has not changed much. The reason is clear in the chart.
First, there is a bearish crossover between cash earnings (EMA). The electromagnetic moving average means the exponential moving average. It shows the average price but gives more weight to recent movements.
When the 20-day moves below the 50-day, it usually means that short-term sellers are stronger than buyers. Currently, the 20-day moving average is very close to crossing below the 50-day. This keeps traders cautious.
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Secondly, the balance volume (OBV) does not help the price. OBV tracks whether the volume is flowing in or out. Between December 12 and December 18, Zcash's price trended downward, as OBV weakened. This indicates that buyers have not yet added strength. Without a clear upward indicator, rallies often fail, and negative movements usually do not reverse.
When putting the picture together, the picture is clear. The EMA crossover warns of short-term pressures. The OBV shows weak following from buyers. This explains why Zcash's price remains stable and awaits a clear direction.
Arthur Hayes's statements provide long-term confidence, but the charts indicate that traders are waiting for technical evidence. Until buyers intervene in the sales volume, the price is likely to remain undefined.
What could determine the next step for Zcash's price?
Large capital flows provide clearer evidence. The CMF or Chaikin Money Flow indicator was rising between December 11 and December 18, while the ZEC price corrected. This pattern means that larger holders are showing interest even as prices remain weak.
However, CMF is still below zero. This is important. Moving above zero often confirms real buying. In previous cases, like early November, the price followed strongly once CMF surpassed this level.
For Zcash, the levels are clear. A clean daily close above $434 will show that buyers are regaining control once again. If that happens, the next important area will be close to $516.
On the downside, $371 is the first major support. If the price drops below this level, sellers may push it towards $301, where previous buying interest appeared.
