Zcash on course for recovery: Will the privacy token rise above $55 in the coming weeks?

Zcash on course for recovery: Will the privacy token rise above $55 in the coming weeks?

Zcash: Current developments and future prospects

In recent weeks, crypto markets have experienced significant fluctuations. Concerns about macroeconomic influences and trade relations led investors to reconsider their strategies regarding risky assets. Nevertheless, the privacy-focused token Zcash is in a recovery phase and has managed to recoup some of its previous losses.

Zcash uptrend

On Tuesday, April 1, Zcash continued its upward move, rising 4.51% to $40.79. This represents a nearly 15% increase compared to the weekly low of $35.30. This bounce helped offset much of the losses the token suffered earlier in the month when it fell to a low of $28.13.

Zcash notably broke the descending trend that was manifested after reaching highs in December last year. This resistance is currently around $35, which Zcash was able to break through last week. Analysts expect a further upswing, aiming for a price target between recent highs and the breakout point.

Support at $30

The token has already bounced off the horizontal line at $30 twice – once in early February and later in early March. This level, previously considered short-term resistance, is now acting as support since the rally in the fourth quarter of last year. The price is now moving in the breakout zone, indicating that Zcash is preparing for another increase.

The current short-term price target range for Zcash hovers around the $55 mark. However, the long-term development of the token will depend on several factors, including the overall macroeconomic situation and demand.

Future of Zcash and its challenges

Privacy coins like Zcash are traditionally less volatile than other cryptocurrencies, but often also have lower upside potential. This is partly due to the regulatory challenges associated with tokens that obscure transactions. For example, Zcash faced difficulties listing on major exchange platforms. OKX delisted Zcash and Monero in December 2023 due to regulatory concerns.

Without access to large trading platforms, such tokens rely on a smaller circle of traders. Still, their usefulness to a dedicated user base protects them from significant price drops. Therefore, a slow but steady price increase for Zcash is expected in 2025, which could reach the range of $60 to $75.

Conclusion

Zcash is currently showing signs of recovery and could develop positively in the coming months, despite ongoing regulatory challenges. Investors should keep an eye on further market developments and macroeconomic factors in order to optimally benefit from possible price increases.