Zcash price surged by 12% in the last 24 hours, outperforming larger coins, including Bitcoin.
Analysts’ forecasts predict that the coin could keep going up due to passing a very strong resistance.
There are also fundamental reasons for these predictions, such as the upcoming block rewards halving.
Bitcoin recently surged to $12,000 per coin, after which its price got rejected back to lower $11,000s. For a short time, it appeared as the price would settle there, but earlier today, it started surging again.
However, while BTC struggled to go up again, another cryptocurrency surged, quickly becoming one of the best performers in the last 24 hours. The coin in question is a privacy coin, Zcash (ZEC).
ZEC price gained around 12% over the past day, which allowed it to strongly outperform Bitcoin, which only grew by around 4%.
Interestingly enough, ZEC was among the worst performers during the crypto winter of 2018. Now, however, it seems to have the potential to be one of the strongest performers, and to rally much higher. Analysts who made such predictions mentioned fundamental, as well as technical reasons for why this might be the case.
Some traders have shared charts that show Zcash’s price performance on August 5th, noting that the rally allowed the coin to breach its pivotal resistance level. Such behavior clears the way for further growth, potentially allowing it to move up by 30%, and maybe even reach its next resistance, which would be at $125.
This is by far the most optimistic forecast. However, others believe that a somewhat smaller resistance at $116 is a more likely target.
ZEC halving is coming
Another thing to keep in mind, which further supports these forecasts, is the upcoming Zcash block reward halving. Zcash, as many likely know, is a fork of Bitcoin at its core.
Of course, it added numerous privacy features, which is what allowed it to become one of the best-known privacy coins in the industry. Even so, it still shares a lot of BTC’s characteristics, such as a capped supply at 21 million coins, as well as block reward halving, which also takes place approximately once every four years.
Unlike BTC, which had its halving on May 11th, ZEC will go through the process around November 19th.
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
The sentiment regarding the halving also makes sense, especially since experts have noted that Zcash’s halvings should have an even larger effect than BTC halvings.