Zcash (ZEC) is a type of digital money. Its price recently went up to about $418, which means it increased by 13% in just one day. Looking at the whole week, its price jumped by 24%.
This price increase happened after Zcash’s price went past a key level of $407. When a price goes above such a level, that level often becomes a ‘support zone’. A support zone is like a floor where the price might stop if it starts to fall again. For now, Zcash’s price seems to be going up. But people who trade Zcash are looking closely at the next ‘resistance levels’. A resistance level is like a ceiling where the price might struggle to go higher.
Zcash’s price is now heading towards another important level at $472. This level is called a ‘Fibonacci retracement level’, which is a tool traders use to guess future price movements. This $472 level might act as a short-term ceiling (resistance). If the price can go past $472, then traders will look at $525 and $616 as the next possible ceilings. These levels have been important before, where the price either stopped or changed direction.
Along the way, the ’50-period moving average’ at about $357 has helped keep the price up. A moving average is like an average price over a set time, which helps show the general direction of the price. On a chart that shows price changes every 4 hours, this $357 level shows the middle point of the recent upward trend.
Also, a tool called the ‘RSI’ (Relative Strength Index) is currently at 69. The RSI (Relative Strength Index) helps traders see if a price has gone up or down too quickly. When it’s close to 70 (like 69), it means Zcash is almost in the ‘overbought zone’. This overbought zone suggests that the price has risen very fast, and it might slow down or even drop a bit soon. So, while the price is going up strongly now, this tool hints that the speed might decrease before the price makes its next big move.
Big Investors Buy as Small Investors Sell
An expert named Ardi looked at recent trading information and noticed something interesting. Small investors (people with $0 to $1,000) and medium investors (with $1,000 to $100,000) are selling their Zcash. But, big investors, often called ‘whales’ (those with $100,000 to $10 million in Zcash), are buying more.
Recently, small investors sold over $30 million worth of Zcash. At the same time, these large investors bought $100 million worth! Ardi called this ‘institutional absorption’. It means big buyers are happily picking up the Zcash that smaller buyers are selling. He also warned that by selling now, smaller investors might be giving their Zcash directly to those who want to push the price even higher.
In a separate view, another expert, BeLaunch, saw that the price struggled around $425 and couldn’t stay above it. This means there were many sellers at that price. He also noticed that not many Zcash coins were being traded when the price went up, which could mean the upward move wasn’t very strong. Also, people who hold Zcash for only a short time were holding less of it. So, the overall money movement was a bit mixed. Money seemed to be leaving ‘derivatives’ (fancy contracts based on Zcash), but new money was coming into ‘spot markets’ (where Zcash is bought and sold directly).
New Fee Plan and ETF Conversion
The team that builds Zcash also suggested a new way to handle fees when the network is very busy. (Fees are small payments you make to send Zcash.) They want to base the transaction fees on the average fee from the last 50 ‘blocks’. (A block is like a page in a digital ledger where Zcash transactions are recorded.) They also plan to add a ‘fast lane’ where you can pay 10 times the normal fee to make sure your transaction goes through quickly when the network is crowded. This change will happen in steps and needs most Zcash users to agree to it, but it won’t be a complete overhaul of the system.
In other news, a company called Grayscale asked for permission last month to change its Zcash Trust into an ‘ETF’. An ETF (Exchange-Traded Fund) is a type of investment that you can buy and sell on a stock market, just like shares of a company. If this change is approved, it would make it easier for regular investors to invest in Zcash. They could do this through a trustworthy, regulated product without actually having to buy and hold Zcash coins themselves.
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