The native token ZEC of Zcash, a privacy-centric protocol, has surged 23% in the last 24 hours, recording the largest gain in the cryptocurrency market. This outperformed major assets such as Bitcoin and Ethereum, which rose 1% and 3% respectively over the same period.
Currently trading at a 2-year high of $56.93, ZEC is expected to see further growth. The reasons are as follows.
ZEC's Long-Awaited Rally...Thanks to Tornado Cash
The double-digit rally in ZEC reflects the overall rise in the value of privacy tokens over the last 24 hours. This was triggered by the groundbreaking decision of the U.S. Court of Appeals.
The court nullified the Treasury Department's sanctions against the cryptocurrency mixing service Tornado Cash, which was targeted by the Office of Foreign Assets Control (OFAC) in 2022 for allegedly facilitating illicit activities.
The ruling found that OFAC had exceeded its authority, and emphasized that Tornado Cash's immutable smart contracts are not considered "property." Following this ruling, the market capitalization of major privacy tokens rose by 4%.
Positive Reaction to ZEC
At the time of writing, ZEC is trading at $56.93, the last price it reached in October 2022. This surge has been accompanied by a significant increase in trading activity, with trading volume reaching $175 million over the last 24 hours, a 68% increase.
When an asset's trading volume rises along with its price, it indicates strong market interest and active participation by both buyers and sellers. This combination suggests a sustainable price rally. The increased trading volume reflects greater liquidity inflow and broader participation in the market rally.
On ZEC's daily chart, the Aroon Up line is currently at 100%, confirming the strength of the uptrend. The Aroon indicator tracks the time since the last highs (Aroon Up) and lows (Aroon Down) within a specific period, measuring the strength and direction of the trend.
An Aroon Up value of 100% indicates a recent new high, signaling strong bullish momentum. In the case of ZEC, the Aroon Down line at 7.14% reflects minimal downward pressure, further supporting the uptrend.
ZEC Price Prediction...New All-Time High?
If the current rally continues, the ZEC token price is expected to find support at $57.20. If it successfully achieves this, the price could then target the $66.98 level, which was last reached in September 2022.
However, if profit-taking activities begin, the ZEC token price could drop to $49.29.
