Zcash (ZEC) price hits yearly high before recent fall
Zcash (ZEC) saw its price reach a yearly high of $45.45 before experiencing a recent dip. This recent peak is not only the highest level for ZEC in 2024, but also the highest level since March 2023.
Zcash’s plan to transition to proof of stake
Speculation surrounding Zcash’s potential move from Proof-of-Work (PoW) to Proof-of-Stake (PoS) has been a major driver behind the recent surge in ZEC’s price. Zcash has traditionally relied on a proof-of-work algorithm similar to Bitcoin (BTC). However, Zcash’s founder, Zuko Wilcox, has hinted at a transition to proof-of-stake.
Wilcox believes that transitioning to proof-of-stake will help alleviate downward pressure on ZEC’s price by reducing the creation of new coins. This move is expected to have a positive impact on the value of ZEC by increasing demand and reducing the circulating supply of coins.
According to Messari data, the issuance of new Zcash coins has been on the rise, reaching 157,000. Wilcox’s concerns about supply growth are supported by this increase in circulating coins.
ZEC Price Prediction: Analyzing the potential for another peak
From an on-chain perspective, Santiment data indicates that ZEC’s weighted sentiment index has been on the rise. This metric uses social volume to gauge market awareness of a project. A positive sentiment suggests optimism, while a negative sentiment indicates bearish sentiment.
Technical analysis of ZEC’s daily chart shows a pattern of forming higher lows since July, indicating strong support levels. Additionally, the golden cross formed by the 20-day moving average crossing above the 50-day moving average confirms a bullish trend for ZEC.
Examining Zcash’s short-term outlook
The short-term moving average continues to outpace the long-term moving average, suggesting the possibility of further price gains for ZEC. If this trend continues, Zcash could potentially reach $46 in the near future. However, a bearish crossover could lead to a price correction, with ZEC falling to around $36.74.
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