Zcash Price Update
Zcash (ZEC), a privacy-focused cryptocurrency, is trading near $392 as of Monday. Over the weekend, ZEC rose close to $450 before pulling back alongside major coins like Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP). Holding a support level above $400 will be key for bulls to continue the upward trend.
Zcash Demand and Market Interest
Zcash has gained almost 425% in the fourth quarter, making it one of the top performers, according to CryptoRank. The token has shown strong growth in two straight quarters, reflecting growing interest in privacy blockchains.
However, CoinGlass data shows retail demand is weakening. Futures Open Interest (OI), which measures outstanding contracts, dropped to an average of $645 million from a peak of $669 million on Sunday. A rising OI is needed to support further price increases. If it falls, it may signal that traders are losing confidence.
The OI-weighted funding rate remains negative, despite ZEC trading near its record high of $449. Negative funding rates suggest traders are reducing risk, which can increase selling pressure and hint at a pause in the bullish momentum.
Technical Outlook for Zcash
Zcash currently trades above short-term support at $390 after falling from its Saturday high of $449. The 4-hour MACD shows a sell signal, encouraging investors to reduce risk, adding pressure to the price.
The RSI is steady at 51, indicating balance between buyers and sellers. The outcome of this struggle could determine short-term price movement.
If ZEC closes below $390 daily, the price could drop toward the 50-period Exponential Moving Average (EMA) near $363 on the 4-hour chart.
Conversely, Zcash might rise above the $400 resistance level if buyers return after the price correction.
