The price of Zcash has struggled to find a clear direction in recent weeks, despite increasing by over 600% in the past 3 months. Additionally, the token continues to move sideways, even as other crypto markets attempt a slight recovery.
This happens even though there has been renewed interest from key figures in the crypto space; recently, Arthur Hayes spoke positively about the design of Zcash.
Nevertheless, the price movement of ZEC still shows hesitation, even though it has increased nearly 4% day-over-day. Traders are currently weighing whether this support will have a short-term impact or if the charts will decide first.
Arthur Hayes discusses the privacy model.
Arthur Hayes is a co-founder of BitMEX and a key figure in the crypto market. Recently, he gave an interview with Kyle Chasse in which he explained how his views on privacy coins have evolved over time.
He stated that while Monero was once viewed as the strongest privacy option, new data and upgrades have changed his mind. Hayes has emphasized the advancements of Zcash, particularly in terms of concealed transactions and cryptographic development.
That is one of the reasons I moved from the Monero group to the Zcash group when it comes to privacy coins, he said around the 30-minute mark of the interview.
An important consideration is the context; Hayes did not mention any price targets for Zcash and did not urge buyers to rush into the market. His message emphasizes technology and design rather than market timing.
Thus, this difference explains why prices are not responding right now.
Why hasn't the price of Zcash moved?
Despite receiving attention from Arthur Hayes, the price of Zcash has not changed significantly. The reasons for this are evident on the chart.
First, the EMA lines are showing a downward cross. EMA means exponential moving average, which shows the average price but gives more weight to recent movements.
When the 20-day EMA moves below the 50-day EMA, it often indicates that short-term selling pressure outweighs buying pressure. Currently, the 20-day EMA is close to crossing significantly below the 50-day EMA, which keeps traders cautious.
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Secondly, the on-balance volume (OBV) has not supported the price either, as OBV tracks whether trading volume is flowing in or out. From December 12 to December 18, the price of Zcash moved lower, and OBV weakened as well. This indicates that buyers have not come in to reinforce, so if OBV does not rise, recoveries are often unsuccessful, and downtrends do not typically reverse.
Looking at the overall picture, the signals are clear. The EMA cross warns of short-term pressure, while the OBV reveals that buyer response is still weak. This explains why Zcash's price remains stuck in a range, waiting for clear direction.
Although Arthur Hayes' comments instill long-term confidence, the charts indicate that traders are all waiting for technical evidence. Until buyers come in with trading volume, prices may not determine a clear direction.
Factors that may determine the next price direction of Zcash.
Large capital flows provide the clearest clues, as the CMF (Chaikin Money Flow) indicator increased between December 11-18, while ZEC's price pulled back. This trend indicates that major holders are showing interest, even though prices are still weak.
However, the CMF value is still below the zero line, which is very important, as moving above zero often confirms actual buying. In the past, such as early November, prices moved forward immediately when the CMF crossed that level.
For Zcash, the price level is very clear. If it closes daily above USD 434, it will show that buyers have regained control of the market. If this occurs, the next important area will be near USD 516.
Meanwhile, USD 371 is considered the first significant support level. If the price falls below this level, sellers may push the price closer to USD 301, where buying pressure previously occurred.
