ZEC, the native token of privacy-focused protocol Zcash, has surged 23% in the past 24 hours, becoming the biggest gainer in the crypto market. It has outperformed major assets such as Bitcoin and Ethereum, which have risen 1% and 3% respectively in the same period.
Currently trading at a two-year high of $56.93, ZEC appears poised for more growth. See why.
Zcash surges thanks to Tornado Cash
ZEC’s double-digit rally reflects the overall rise in privacy token values over the past 24 hours, driven by a landmark ruling by a US federal court.
The court has overturned the Treasury Department’s sanctions on Tornado Cash, a crypto mixing service previously targeted by the Office of Foreign Assets Control (OFAC) in 2022 for allegedly facilitating illicit activities.
The ruling concluded that OFAC exceeded its authority, emphasizing that Tornado Cash’s immutable smart contracts do not qualify as “property.” Since that ruling, the market cap of major privacy tokens has increased by 4%.
ZEC reacts positively
At the time of writing, ZEC is trading at $57.60, a price it last touched in October 2022. This rise has been accompanied by a significant increase in trading activity, with volume reaching $175 million in the last 24 hours, marking a 68% increase.
When an asset’s trading volume rises along with its price, it indicates strong market interest and heightened activity among buyers and sellers. This combination suggests a sustainable price rally. The increase in trading volume reflects increased liquidity flow and broad participation in the market rally.
ZEC Price and Trading Volume. Source: Santiment
ZEC's Aroon Up line on the daily chart confirms the strength of its uptrend, currently at 100%. The Aroon Indicator measures trend strength and direction by tracking the time since the highest high (Aroon Up) and lowest low (Aroon Down) within a specific period.
An Aroon Up value of 100% indicates a new recent high, signaling strong upward momentum. In the case of ZEC, the Aroon Down line is at 7.14%, reflecting minimal downward pressure and further supporting the uptrend.
ZEC Aroon Line. Source: TradingView
ZEC Price Prediction: A New High Near?
However, if the current rally persists, the ZEC token price will establish support at $57.20. Furthermore, a successful breakout could propel its price towards $66.98, a level it last reached in September 2022.
ZEC Price Analysis. Source: TradingView
However, if profit-taking activity begins, the ZEC token price may drop to $49.29.
The article Zcash (ZEC) Hits 2-Year High and Hits $175M in Volume appeared first on BeInCrypto.
