ZEC is one of the best-performing top 100 cryptocurrencies over the past week, with its price surging by nearly 65%.
And while many market observers believe the bulls aren’t done yet, one analyst warned that a violent move south could come next. Here’s why.
The cryptocurrency market has enjoyed a sudden and evident resurgence over the last several days, following the monetary policy changes in the US announced by the Treasury Department, among other factors.
ZEC caught the green wave and rallied harder than BTC, ETH, XRP, and many other popular cryptocurrencies, probably because another catalyst directly affected it. As CryptoPotato reported, the leading digital asset manager Grayscale revealed discussions with a Digital Currency Group (DCG) subsidiary over a contribution of roughly 200,000 ZEC to its Zcash Trust. Later, it was revealed that the product would be converted into an ETF, with the launch scheduled for August 25.
ZEC’s price briefly jumped to roughly $880 on August 23, representing the highest mark since January 2018. In the following hours, the bulls lost some steam, and the asset currently trades at around $848 (per CoinGecko), with a market capitalization of over $14 billion.
X user jussy recently opined that ZEC “is looking good” after its solid increase, anticipating further gains to $930 if it successfully breaks $850. For their part, Crypto Tony claimed that $1,000 is the minimum of the cycle.
Contrary to the predominant optimistic views, Crypto with Harris ₿ argued that ZEC’s “real value” lies below $500. The analyst reminded about the critical vulnerability Zcash experienced earlier this year, which triggered a massive price collapse. Back then, the crash prompted some prominent industry figures, such as Arthur Hayes, to sell their entire positions in the coin.
Crypto with Harris ₿ paid close attention to ZEC’s chart and noted that the price is well above its daily averages and even the upper Bollinger Band. In their view, this is proof that the move has already been “extremely stretched,” warning people to be aware of influencers who project rallies beyond $2,000.
“ZEC is ZEC. It is not Bitcoin,” they concluded.
Anyone looking to engage with ZEC should also take into account its recent exchange net flow.
Over the last several days, inflows have far outpaced outflows, indicating that many investors have abandoned self-custody and flocked to centralized platforms. This is considered a bearish signal as it increases immediate selling pressure.
The post Zcash (ZEC) Explodes to an 8-Year High, But an Analyst Warns of a Major Crash appeared first on CryptoPotato.
