Zcash (ZEC) Fails to Cross the $61 Level: What’s Next?

Vitalik Buterin, the founder of Ethereum, recommended that some Proof of Work cryptocurrencies like Zcash and Dogecoin should switch to Proof of Stake in coming years. In a 2020 Mainnet event, he stated that Merge is a small upgrade on the main net for the upcoming advancements.

Indeed, the switch from ‘Proof of Work’ to ‘Proof of Stake’ consensus of Ethereum is one of the biggest events in the crypto world. If Dogecoin and Zcash Switch to PoS, then this will be another ‘big event.’ Although Zcash programmers are considering the switch, they are also considering the potential benefits and drawbacks of the same on the network.

Zcash is a privacy-oriented digital payment system that supports anonymous transactions. It runs on a cryptographic tool to keep transactions secure and private to any third-party organization. It is a better alternative to similar privacy-oriented cryptocurrencies like the Monero because it offers the following facilities:-

Better Privacy: It encrypts transaction information with Zero-Knowledge Proofs enabling verification without specific details and addresses.

Different Options: It helps users to hide their personal information during transactions. There is also an option that allows one party to hide their own personal information while the other party’s information remains public.

Fungible Tokens: Zcash tokens are fungible, so it is difficult to identify them.

Regulatory Friendly: Unlike many other networks, it does not face regulatory scrutiny because it offers an option to the users to disclose personal information if necessary.

Indeed, Zcash is popular crypto, and it will become more sustainable if it switches to a PoS network.

At the time of writing this post, ZEC was trading around $55.78. Considering the pattern from June to September, you can find a head and shoulder form. That means from June to August, the Zcash coin was in an uptrend; after that, it is now in a downtrend. Even in the beginning of this month, ZEC price fails to surpass its resistance and keep trading around $62.

On the daily chart, $52 is strong support and has formed another higher support, around $55, but we cannot consider Zcash bullish because candlesticks are forming in the lower half of the Bollinger Bands, and the RSI is around 40. However, if it breaks the support, we can consider ZEC for long-term bearishness.

Even on the weekly chart, Zcash candlesticks are forming in the lower range of the BB. Moreover, the RSI is around 40, which suggests bearishness, and $100 is a strong resistance of the ZEC coin. If it crosses that level, you can consider it long-term bullish and take positions for the long term.

Before that, you should add it to your watch list and mark resistance and support levels because if ZEC breaks any of these levels, it will change the momentum for the next few months.