ZCASH flies around a three -year summit, but the increase could run out of steam

The token climbed in the wake of the launch of the Zcash Trust in Grayscale, which rekindled the demand of investors. But while ZEC now dominates the market in terms of performance, increasing on daily graphics and weekly, On-chain signals warn against potential overheating and a risk of correction.

ZCASH flies 83 % in 24 hours after the launch of the Grayscale Trust

ZEC, one of the main Tenchings focused on confidentialityextended its explosive race with a 83 % increase over the last 24 hours, becoming thus The best performer of the day.
Over a week, the ZEC posted +150 %ahead of other cryptocurrencies in the same category.

This outbreak followed the launch of ZCASH TRUST de Grayscale, now accessible to accredited investors. This product allows them to obtain exposure to ZEC without directly holding the token. The announcement has sparked high demand, propelling the price to its highest levels for three years.

Despite a still sustained momentum, on-chain data call for caution: several indicators point to a market euphoria, raising doubts about the sustainability of this increase.

The social dominance of ZEC reaches a five -year summit, an overheating signal

One of the most striking signals comes from the social dominance of ZEC. According to health data, This measure reached 1.21 %or its highest level for five years. Social dominance indicates the share of cryptos discussions centered on a single asset; A quick flight during a rally often suggests overestimation and a feeling of crowd.

Historically, this type of peak often precedes a correction: enthusiasm ends up reaching a difficult level sustainable. ZCASH could thus enter into overheating zone despite its current dynamics.

ZEC funding rates also reflect this uncertainty: during the last week, they oscillated above and below the neutral levels on the main platforms. This lack of direction Claire shows that the traders have no dominant bias, the long and short positions relaying in turn. This volatility reflects a highly speculative positioning, leaving the ZEC vulnerable in the event of a reversal of feeling.

The ZEC climbs to $ 146 in a context of strong momentum and bullish feeling

At the time of writing, ZCASH is negotiated at $ 146, after four consecutive weeks of increase.

Other notable trends:

• +454 % over a year, one of the most marked rallies of the Crypto market.
• Outperformance at the top 100 Cryptos over the same period.
• Better progression that Bitcoin and Ethereum, consolidating its reference role among the cryptos focused on confidentiality.
• Course above the mobile average at 200 dayssignaling a strong technical momentum.
• 18 days bullish out of the last 30 (or 60 %), proof of sustained purchase pressure.
• Positive market feelingthe index Fear & Greed Being at 64, in “greed” zone.

In the medium term, ZEC trajectory will depend on its ability to keep its current momentum. If the craze were to run out of steam, the token could see part of its earnings fading. Immediate support is around $ 134.48, while more marked correction could bring prices to $ 112.72.

Conversely, a sustainable bullish impulse could allow ZEC to cross the resistance of $ 161.35, thus extending its progression.

The next few days will be decisive to find out if ZCASH manages to consolidate his earnings or exposes a clearer correction. Traders and investors will remain attentive to the signals of a resumption of purchases as well as any sign of shortness of the market.