- Zcash price has risen by over 18% from Tuesday.
- The rally is mostly because of expectations of more demand due to cybercrime.
The Zcash price has done well in the past few days as demand for privacy tokens rise. The ZEC token is trading at $140, which is 18% above where it was on Tuesday. As a result, its total market capitalization has jumped to about $1.7 billion.
Zcash price soaring
One of Satoshi Nakamoto’s goal, when he invented Bitcoin, was to enable people send money and make payments without being tracked. However, in the past, BTC has not been a good cryptocurrency in terms of privacy since it uses a public ledger.
There are many evidences about this. For example, in 2021, the Federal Bureau of Investigations (FBI) said that it had secured the Bitcoin that Colonial Pipeline paid to Russian hackers. And this year, the bureau said that it had managed to track and recover Bitcoins that were stolen in the BitFinex hack.
These developments mean that many hackers will embrace other privacy-focused cryptocurrencies like Monero, Dash, and Zcash.
Analysts expect that a cornered Vladimir Putin will embrace more hackings in a bid to save face considering that western countries have implemented significant sanctions on his economy. The Central Bank of Russia (CBR) has been blocked access of key holdings and many banks have been locked out of the SWIFT system.
Therefore, there is a likelihood that there will be more ransomware attacks this year. If they happen, there is a likelihood that the hackers will demand coins like Zcash. This explains why the Zcash price is rising today.
Still, there is a risk to the overall cryptocurrency industry as governments think about regulations. For example, Elizabeth Warren is coming up with a legislation to prevent Russian officials from embracing digital coins. Joe Biden also asked his agencies to assess and come up with regulations on the industry.
Zcash price prediction
The daily chart shows that the Zcash price has been in a strong recovery pace in the past few days. As a result, the coin has managed to move above the key resistance level at $134.85, which was the highest level on February 8th. The coin has also moved above the 23.6% Fibonacci retracement level.
It has also moved above the 25-day and 50-day moving averages, which is a bullish signal. Therefore, there is a likelihood that the ZEC price will continue rising as bulls target the next key resistance at $160, which is along the 38.2% retracement level.
