Zcash (ZEC) has surged by over 8% in the past 24 hours, making it one of the top gainers in the cryptocurrency market.
ZEC climbed from around $203 to nearly $223 in just 24 hours, reflecting renewed optimism.
The move comes as the broader crypto market is seeing a recovery.
The cryptocurrency market has started the week on a strong note, with Bitcoin and other major coins trading in positive territory.
Bitcoin was trading above $71,000 after gaining about 4%, as volatility linked to the ongoing geopolitical tensions eased and risk appetite across the market improved.
ZODL funding sparks renewed interest
The main driver behind this rally appears to be the recent $25 million funding raised by the Zcash Open Development Lab (ZODL).
ZODL is a development lab formed by former core engineers from the original Zcash team.
Their goal is to continue developing the protocol and privacy-focused tools that Zcash is known for.
The funding round attracted heavyweights from the crypto venture world, including a16z Crypto, Paradigm, and Coinbase Ventures.
This level of backing has boosted confidence in Zcash’s long-term development and the privacy ecosystem surrounding it.
The investment is seen by many as a sign that Zcash has strong institutional support.
Also, it coincides with a surge in adoption for Zcash’s shielded transactions, which are designed to enhance user privacy.
In fact, activity in the shielded pool has grown dramatically since the launch of ZODL’s updated wallet, signalling increased usage and interest.
Short-term Zcash price prediction
From a technical perspective, ZEC faces key levels that traders should watch.
The first level that traders should keep their eyes on is the short-term is the support located around $188.50, which acted as the floor before the current price surge.
Below this, analysts note that the next support zone is located at around $78.70, indicating significant risk if momentum fades.
On the upside, immediate resistance for Zcash (ZEC) stands at $230.77, a level that has historically capped short-term price rallies.
A sustained move above this level could open the door to further gains, with $285.58 and $296.96 emerging as the next resistance zones.
However, despite the slow 200-day moving average crossing above the 50-day moving average, Zcash continues to trade below both indicators.
This suggests that while the price is recovering, bullish momentum has not yet been firmly established.
At the same time, the Relative Strength Index (RSI) remains below the 50 mark.
This indicates that the token still has room to move higher before reaching overbought territory, although it also signals that sellers could still gain the upper hand over buyers.
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