Here’s why Zcash price rallied over 20% today

Zcash price shot up over 21% today, extending its gains over the past week to over 60% as privacy coins see renewed demand from investors.

According to data from crypto.news, Zcash ($ZEC) price rose nearly 23% to a three-month high of $383 on Friday, April 10. At this price, the token remains nearly 86% higher than its year to date low. The token’s gains have made it the best-performing crypto asset in the daily and weekly timeframes, largely outpacing the others that followed.

Zcash’s rally came amid strong interest from retail investors for the asset over the past couple of days. Notably, data from CoinGlass shows that this demand has driven its futures open interest to $818 million on Friday, up nearly 26% from levels recorded the previous day.

As such, if investor demand continues to build for the token, it could likely continue its uptrend as bulls try to push its price above $400 for the first time since January.

A major catalyst driving investor interest has been growing attention towards its shielded liquidity pools, one of the core features of the network that ensures transaction confidentiality. The Zcash dashboard shows that over 31% of all $ZEC coins are now held in shielded pools. This represents nearly $1.96 billion in protected value.

Zcash price also gained momentum from a broader rally among privacy-focused cryptocurrencies today, as the total market cap of these assets rose over 11%, bringing its market cap to over $13 billion. Notably, Monero (XMR), currently the market leader in the privacy sector, has risen 4.3% in the past 24 hours. Other privacy tokens, such as Dash (DASH) and Decred (DCR), also recorded significant gains.

Zcash price analysis

On the daily chart, Zcash price has broken out of a descending triangle, a major bullish reversal signal in technical analysis.

Zcash price has broken out of a descending triangle on the daily chart — April 10 | Source: crypto.news

The Supertrend indicator has flipped green, a sign that the bulls are now firmly in control of the market. At the same time, the RSI has crossed above overbought levels, lying at 78, which means the token is seeing massive buying pressure, though it may face a brief cooling off period.

For now, the key overhead resistance level for Zcash next lies at $419, the 61.8% Fibonacci retracement level. A break above the resistance could spur a rally toward the $450 psychological mark.

On the contrary, if Zcash price falls below $332, where the 38.2% Fibonacci support level lies, the bullish thesis could be invalidated, leading to a deeper correction toward $300.

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