One of the best-performing crypto assets of the past 24 hours has been Zcash (ZEC). According to data from Trading View, the cryptocurrency has gained 12% over the past day’s trading session, outperforming Bitcoin’s 4% gains and Ethereum’s 2.5% gains.
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Zcash Could Soon Rally Even Higher Than It Already Has: Analysts Say
ZCash could press even higher in the days ahead, says a multitude of crypto analysts.
One trader shared the chart below on August 5th, noting that ZCash’s recent price action has brought it above a pivotal resistance level. This clears it for a 30% move to the “next strong resistance” at $125.
Chart of ZEC's recent price action against the U.S. dollar (USDT, to be exact) by trader Satoshi Flipper. Chart from TradingView.com
Another market commentator echoed the optimism, targeting the resistance at $116 rather than that at $125:
“I’m not in this trade but super happy for all the homies that are! Congrats are killing this: – Every resistance has been barreling through – I could see a slight pull back to support before another leg up to $116. Magnet Activated.”
ZEC’s Impending Halving
Underscoring these positive technicals for ZEC is the cryptocurrency’s upcoming block reward halving. At its core, Zcash is a fork of the Bitcoin protocol with added privacy features; although the codebases of the projects have mostly diverged, both cryptocurrencies have a 21 million coin supply cap and block reward halvings every four years.
ZCash’s next halving is taking place in November, with estimates placing the date of the event on November 19th.
Avi Felman, a trader at BlockTower Capital, sees this fundamental event as a potential catalyst for the altcoin to move higher. On August 5th, he commented in response to the asset’s bullish price action:
“The halving in November this year meaningfully reduces supply on market. ZEC is one of the most inflationary coins on the market, and so IMO the argument for the halving leading to a more bullish ZEC is stronger than the argument for the BTC halving leading to a bullish BTC. Disclosure: we are long ZEC.”
The halving in November this year meaningfully reduces supply on market. ZEC is one of the most inflationary coins on the market, and so IMO the argument for the halving leading to a more bullish ZEC is stronger than the argument for the BTC halving leading to a bullish BTC. https://t.co/w2XQjDqMYG
— Avi IS RIGHT (@AviFelman) August 5, 2020
From a pure numbers standpoint, this sentiment makes sense: because ZEC is earlier along in its emission curve than Bitcoin, each of ZEC’s halving should have a larger effect than each of Bitcoin’s halvings.
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Featured Image from Shutterstock Price tags: zecusd, zecbtc Charts from TradingView.com Zcash Just Surged 12% as Bitcoin Stagnates: Here's Why