Zcash, a privacy-protecting cryptocurrency has hit a local high which could have significant implications for the crypto market. This is according to technical metrics which suggested that the cryptocurrency grew up to about 60% last month.
Reports have it that the recent 24-hour surge is a new record high for Zcash price hit nearly over 60 percent during this period. The privacy-protecting cryptocurrency rose from $29.7 to a staggering $47.6.
According to analytics corporation, Santiment, Zcash’s social volume swelled up to 25 percent recently, hitting a new monthly high.
Zcash demand may spark an uptrend in crypto market
Last month, TD sequential indicator which is responsible for delivering accurate predictions submitted three several sell signals (9 green candlesticks). All of which were validated. These signals indicated that the altcoin fell 20%, 4.7%, and 18% respectively.
Again, the indicator is delivering another similar bearish signal (9 green candlesticks) likely to be validated due to its 200-twelve-hour moving strength. If validated, Zcash is likely to drop in the first four candlesticks before it continues to increase.
However, this drop may leave the altcoin at 38.2% or 23.6% Fibonacci retracement levels. But this is not a problem if the demand for Zcash increases. For this to take place, the privacy-protecting altcoin will have to surpass its 200-twelve-hour moving average. Zcash could move up to $54 if this is done, coupled with another increase in its social volume.
Zcash price impact on crypto market
Zcash and Bitcoin have a strong relationship according to BitInfoCharts. With an average coefficient of correlation at 0.97, their relationship is really positive. Therefore, a decrease in the altcoin’s price will also lead to a decrease in the price of bitcoin, affecting the general crypto market.
Other altcoins like Ethereum and Litecoin have seen their social volume increase recently with signals predicting the same increase across other cryptocurrencies. Still, it is too early to say that the increase in Zcash’s social volume will cause a market uptrend.