Mantle (mnt) 
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Zcash (ZEC) has continued its upward momentum, with its price rallying on Monday as the total shielded value in its network and social dominance score climbed. The cryptocurrency surged to a high of $56.75, marking its highest level since January, and reflecting a remarkable 125% increase from its lowest point this year. This recent rally has brought Zcash’s market capitalization close to $900 million.
Understanding Zcash’s Shielded Value
One of the key drivers behind Zcash’s price rally is the rise in its total shielded value. Data indicates that the shielded value has grown to 3,062,081 ZEC, up significantly from last month’s low of 2,650,000 ZEC. This metric highlights the amount of ZEC stored in the network’s sprout and sapling pools, which are tied to shielded addresses.
Shielded addresses leverage zero-knowledge proofs to encrypt transaction details, such as the sender, recipient, and transaction amount. This differentiates them from transparent pools, where transaction details are publicly accessible. Currently, transparent pools hold 12,977,815 ZEC.
The distinction between shielded and transparent pools reinforces Zcash’s position as a leading privacy-focused cryptocurrency, catering to users who prioritize anonymity in their transactions.
Rising Demand for Privacy Coins
The surge in Zcash’s price aligns with growing interest in privacy coins, particularly after the legal issues surrounding Tornado Cash concluded. Monero (XMR), another prominent privacy coin, has also experienced strong momentum, rallying for eight consecutive weeks and nearing its all-time high. This trend underscores the increasing demand for cryptocurrencies that prioritize user privacy.
Technical Analysis of Zcash (ZEC)
From a technical perspective, Zcash appears to be in a strong bullish trend. The daily chart reveals that ZEC found robust support near $28 earlier this year, a level it tested but failed to break below on multiple occasions since February. The cryptocurrency has since broken above a key resistance level at $42.45, which had acted as a ceiling on March 2 and April 1.
Currently, ZEC is approaching the 38.2% Fibonacci retracement level, a critical zone often observed by traders. Additionally, a bullish crossover has formed between the 50-day and 100-day Exponential Moving Averages (EMAs), signaling potential further upward movement.
Key Indicators to Watch
- The Relative Strength Index (RSI) has climbed to 74, indicating that ZEC is in overbought territory. While this suggests a potential pullback, it also highlights the strong buying momentum.
- ZEC has entered the third phase of the Elliott Wave cycle, which is typically characterized by a prolonged and impulsive price movement.
With these factors in play, Zcash could continue its upward trajectory, with bulls likely targeting last year’s high of $79.80. This would represent an additional upside of approximately 47% from its current levels.
Final Thoughts
Zcash’s recent rally reflects a confluence of factors, including rising demand for privacy coins, technical bullish signals, and increasing shielded value within its network. As the cryptocurrency market evolves, Zcash remains a key player in the privacy coin sector, appealing to investors seeking secure and anonymous transactions.
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