ZCASH (ZEC) Price Prediction for 2021: Will ZEC/USD Resume the Uptrend Again in 2021?
Last Update: August 18th, 2021
Zcash – Forecast Summary
|Zcash Forecast: Q4 2021|
Price: $200 – $250
Price drivers: Crypto market sentiment, War on cryptos, Price correction
|Zcash Forecast: 1 Year|
Price: $300 – $380
Price drivers: Zcash upgrades, Recovering global economy, Market sentiment
|Zcash Forecast: 3 Years|
Price: $650 – $850
Price drivers: Crypto market sentiment, DeFi Adoption by Zcash, Upgrades, Global politics
The cryptocurrency Zcash has been in a bearish correction lately and while it has made some respectable gains in recent weeks, it still remains on a bearish trend, with lower highs. Considering the last two month’s performance, the ZEC/USD pair has gained around $55, gaining nearly 65% this year, to trade at $140. ZEC had a great performance during the first several months, increasing to $393, although it came short of the January 2018 highs at $875and the 2016 highs above $1,000. Currently, the ZEC/USD Live Price chart shows that Zcash (ZEC) has been keeping bullish bias since late July as the sentiment turned positive in crypto market after the crash on the Chinese crackdown. But, it faces obstacles above and remains well behind the rest of the market which has resumed the bullish trend again.
The entire crypto sector has rebounded in the past few weeks, however, Zcash (ZEC) continues to have trouble breaking through the psychological $160 level. The downtrend appears to be breaking thanks to the Bitcoin rally, however, we will need to see the price move above $160 for any further upside to occur. A break and hold above this level would be a strong buy signal, since there are resistance indicators at that are.
Everybody knows about Bitcoin, Litecoin, and Ethereum. Apart from them, other digital assets, including Zcash, can also provide investors exciting opportunities.
Zcash is one of the most promising tokens that provide anonymity for its users and their transactions. Zcash is the first open-source digital asset based on a blockchain. The Zcash was initially released on October 28, 2016.
Furthermore, Zcash has improved its privacy by applying zero-knowledge proofs (zk-SNARKs), which allows users to verify transactions without disclosing information. Besides this, the Zcash coin also allows users to share address and transaction information they can select to comply with audits and regulations. As per its developers, ZEC’s creation is backed by strong science. Let’s talk regarding ZEC addresses. ZEC addresses are divided into 2-types:
As a digital currency, Zcash is similar to Bitcoin. The Zcash coin has many things in common with Bitcoin as Bitcoin’s framework became a foundation for Zcash. Despite this, there is a significant difference between both coin’s values. BTC is trading near $45,000, while ZEC is still below $160. It should be clear that the prediction of Zcash price is not an easy task. Therefore, we will examine historical price movements to predict them as best as we can. To make your investing future more secure, we will describe factors that can affect the coin’s market price, which in turn will help you make your Zcash price forecasts.
Recent Changes in the Zcash Price
|Period||Change ($)||Change %|
Zcash (ZEC) Price Prediction for the Next 5 Years
Zcash cryptocurrency, developed by Matthew Green, was officially released on October 28, 2016. The launch of the private ZEC coin gained a lot of attention, which in turn helped its price climb to around $6,000. But the upticks were short-lived, and later ZEC price settled in the $40-70 area. As per Coinmarketcap, Zcash cryptocurrency is the 35th biggest cryptocurrency across the globe. Despite its features, it’s not among the 15 largest digital assets. In 2018, the Zcash price was around $900. Since 2019, it dropped within a narrow range of $30-$70, but surged during the first several months of 2021, reaching a high of $393. then came the crash and Zcash has been looking weak since then despite the recent strong rally in the crypto market since late July, as the price action has shown.
The fluctuations in the price of cryptocurrencies generally arise due to upgrades in their blockchain or because of cooperation agreements. The same factors helped Zcash coin to grow. The earliest notable event happened in May 2017, when Zcash Coin developers agreed with JPMorgan to add the privacy technology of Zcash to the JPMorgan blockchain platform. At that moment, the ZEC coin’s capitalization and market value hit a high and drove the currency to the top 10 crypto assets. ZEC traded near $400 in June 2017.
At the beginning of 2018, the price of the ZEC coin rose further amid all-around crypto popularity. The price was around $900, but the gains were short-lived. Afterward, the crypto growth effect expired, and Zcash returned to its normal rate. The next meaningful rise occurred in June 2018, when the price rose above $100. The reason could be associated with the strength of bulls who tried to push Zcash from its lowest level since 2017. Afterward, the price rose in February 2020. However, the buyers were not able to keep the price at the highs. As a result, Zcash Coin dropped below $25 in March 2017. Again Zcash was pushed to $100 in August 2020. Zcash was pushed to $100. Although ZEC lost in value in September 2020, this rise helped the Zcash Coin move from previous lows.
Zcash is highly volatile. It’s not easy to predict its value in advance and many large crypto investing firms have failed miserably to predict the price in the future. Although we predict that the price of Zcash is expected to soar to $200-250 by the end of December 2021 and it may skyrocket above $1000 by 2025. As ZEC is one of the most volatile crypto assets, it’s hard to forecast its price correctly. To understand properly, we recommend applying fundamental and technical analysis and reviewing your projections regularly.
Factors Affecting Zcash cryptocurrency
Supply and demand – One of the key factors that influence the cryptocurrency price is supply and demand. The higher the demand and lower the supply, the higher the price. Conversely, if demand is low and supply is high, the prices of the coin will decrease. As we are well aware, the supply of cryptocurrencies is limited. Moreover, over time it starts to slow down slowly. Therefore, the demand for assets will likely exceed the available amount. The demand for individual cryptocurrencies may vary greatly. This, in turn, is influenced by many other specific factors that distinguish a given virtual coin from others.
Mining – Cryptocurrencies do not come from anywhere, but Crypto miners extract them using specialized equipment called excavators. This method becomes more and more difficult day by day. If the cost of extracting virtual currencies rises, it tends to underpin the prices of the coin.
Rules and regulations- The rules or requirements introduced by national authorities also leave a notable impact on cryptocurrencies. If the rules become quite restrictive, it may leave a bearish impact on cryptocurrencies. Conversely, if they speak kind words about the crypto industry, it will have a bullish impact on cryptocurrencies.
Power of the media – The media is seen as one of the key tools that can help or harm cryptocurrencies. They are considered a type of spindle that drives moods among investors. Normally, the good news will leave a bullish impact on it, while bad news can cause panic, which leads to a quick fall in cryptocurrencies.
Financial crises – The cryptocurrency prices also rely on the economic situation in the concerned countries. If the country’s financial system starts to fall, people start to panic and run into other assets.
Technical Analysis – ZEC/USD Oversold on All Charts
The ZEC/USD pair is exhibiting bearish correction since the reversal in the May 2021 high of $390s, although there’s different highs for every broker for Zcash. On the technical front, the pair was trading really bearish from May until July, holding just above monthly 20 SMA, which is acting as a support level. The leading technical indicator, the stochastic indicator is oversold on the monthly time-frame, which means that ZEC/USD is now oversold on this chart and might reverse higher, especially after the 20 SMA held. This moving average has worked as a resistance at the beginning of 2020 and as a support late last year, immediately after the price pushed above it. Now, the price is trading just above it again and we are starting to see a bounce. But it seems really weak compared to most other cryptocurrencies.
ZEC/USD – Monthly Time-frame – The 20 SMA is holding for now
On the weekly time-frame, ZEC/USD increased to $800-$900 during late December 2017 and early January 2018, but again there’s no clear high for back then, because it changes for every crypto broker. Moving averages were just appearing and they acted as support immediately, while turning into resistance when the price turned bearish. The 20 SMA (gray) in particular and the 50 SMA (yellow) were doing a good job, but the surge came this year and they were broken, as Zcash increased to $390s. Now the smaller MAs such as the 50 SMA (yellow) and the 100 SMA (green) are working as support again, while the 200 SMA (purple) is acting as resistance.
ZEC/USD – Weekly Time-frame – Will the 200 SMA be broken soon?
On the daily chart, moving averages were broken without much hesitation and they turned into resistance without hesitation either. The 100 SMA (green) was the first to provide resistance after it was broken, then the 200 SMA (purple) and ultimately the 20 SMA (gray) took its place. The 20 SMA was pushing Zcash down for about a month until the reversal took place. But, now the price has failed at the 200 SMA which is acting as resistance once again. Zcash is starting to reverse, so it once again looks much weaker than most of the other cryptocurrencies.