The popular privacy token Zcash (ZEC), which has been riding high over the past several months, experienced a substantial correction of more than 14% in the last 24 hours. The question now is whether this is a good zone to jump on the bandwagon or a pivotal moment, marking the end of the rally.
More Fuel Left?
ZEC traded at around $50 less than two months ago, and perhaps not too many people expected what happened next. The asset’s price started a major bull run, which peaked at the beginning of November when it reached a seven-year high of over $730.
In the next days, ZEC followed the pullback of the broader crypto market, and today (November 18), it is the worst-performing top 100 digital asset, posting a loss of 14% and currently trading at roughly $575.
Despite the retreat, numerous industry participants remain optimistic that the token’s valuation could rebound in the short term. X user GEM DETECTER envisioned a rally above $800 throughout November, while the analyst with the moniker yuna predicted an ascent to as high as $1,800 in the following months.
The leading digital asset manager, Grayscale, also chipped in, albeit staying away from outlining forecasts. The organization argued that ZEC "helps make private, on-chain transactions possible" and highlighted its product, Grayscale Zcash Trust, which allows investors to gain exposure to the asset.
Recall that ZEC’s upward move began at the start of October, when the digital asset manager praised the coin’s use cases and noted that the Trust is "open for private placement for eligible accredited investors."
Further Losses on the Way?
Contrary to the optimists mentioned above, X user Crypto Tony outlined a bearish prediction. The analyst expects ZEC to decline to $540 over the next few days, provided the price remains below $608.
The asset’s Relative Strength Index (RSI), calculated on a weekly scale, also signals pain ahead for the bulls. The technical analysis tool measures the speed and magnitude of recent price changes to give traders an idea about potential reversal points.
It varies from 0 to 100, and readings above 70 indicate that ZEC is overbought and poised for a correction. On the other hand, ratios below 30 are viewed as buying opportunities. Currently, the asset’s RSI stands at around 78.
