ZEC is ready for a big climb

ZCash (ZEC) price has been rallying after a sharp drop to $190, supported by increased demand from retail and institutional investors. ZCash fell about 20% as Bitcoin fell below $104,000, but buyers entered the market at the 38.2% Fibonacci retracement support level ($201). The Relative Strength Index (RSI) also reached 37, indicating oversold conditions.

This caused the price to experience a significant increase in the past 24 hours, reaching a daily high of $233. At the time of writing, Zcash is trading in the $220 range, up more than 14%.

New data shows that Grayscale has seen more than $46 million in new inflows into its Zcash fund this month, while the number of secured transactions on the network has reached 4.42 million units, or about 27% of the total circulating supply. This could reduce the token’s circulating supply and increase upward pressure on the price.

However, analysts warn that the important resistance at $238 still prevents further growth, and only a consolidation above $220 can confirm the start of a new uptrend.

If this range is broken, the next targets will be $265, but a loss of $190 may open the way for a correction to $157.