The crypto markets have had a volatile past few weeks. Fears over macroeconomics and trade have made investors reassess risky assets. However, the privacy-focused token Zcash is in a recovery period, regaining some of its earlier losses.
On Tuesday, April 1, the Zcash coin continued its rally, rising 3.00% to $39.62. This resulted in a 20% price increase from its weekly low of $35.30. The rally helped eliminate much of the losses it experienced earlier this month when it dropped to $28.13.
The token has bounced back from the horizontal line at $30 twice now, once in early February and later in early March. This level, now serving as support, was a short-term resistance before last year’s fourth-quarter rally. This also brought the token into the breakout zone, indicating that it is preparing for a rally.
Specifically, the Zcash price has broken the descending trendline that began forming after reaching its highs in December last year. This level is around $35, which Zcash managed to break out of last week. This move shows that analysts expect a rally targeting a price between the recent highs and the breakout point.
Currently, the short-term price target for the Zcash token is around $55. However, longer-term performance will depend on several factors, including macroeconomics and demand for the token.
How High Can Zcash Go?
Privacy-focused coins have historically been less volatile than the rest of the markets but have seen less upside. One reason for this is the potential regulatory challenges with tokens that obscure transactions. Zcash, for example, has faced challenges regarding exchange listings. For instance, OKX delisted Zcash and Monero in December 2023, citing regulatory issues.
Without access to major exchanges, these tokens rely on a smaller pool of traders. However, their utility for a dedicated group of users also shields them from major price declines in the future. This suggests that Zcash is likely to experience slow and steady growth in 2025, reaching the $60 to $75 range.
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