Is Zcash set for $500 as ZEC surges 56% on rising demand?

Bitcoin has sustained its price above $71,000, while Ether is trading at $2,200 once again as the broader crypto market has stabilised.

However, ZEC, the native coin of the privacy blockchain Zcash, is outperforming the other major cryptocurrencies. 

ZEC is up 56% in the last seven days, making it the best performer among the top 20 cryptocurrencies by market cap. 

Its rally is largely driven by growing retail demand. If the demand increases, ZEC could extend its rally towards the $500 psychological level over the coming hours or days.

Zcash sees sustained retail demand

ZEC is up by 17% in the last 24 hours, outperforming Bitcoin and other major cryptocurrencies in the process.

Zcash’s rally comes as retail interest in the coin continued to grow over the last few days, driving futures Open Interest (OI) to $790 million on Friday, up from $689 million the previous day.

If demand continues to expand, Zcash will likely resume its uptrend, targeting a breakout above $400 for the first time since late January.

ZEC’s price briefly hit the $400 mark late on Thursday but has slightly retraced and is now trading at $371 per coin. 

The retail interest in ZEC continues to push other metrics higher.

CoinGlass’s futures Open Interest (OI) weighted funding rate has flipped positive and now reads 0.0064%.

With the outlook improving, ZEC’s price could record further gains over the next few hours and days. 

Technical outlook: Zcash eyes $500 psychological level

The ZEC/USD 4-hour chart is bullish and efficient as ZEC has outperformed other major cryptocurrencies since the start of the week.

Currently, ZEC is trading above the 50-day, 100-day, and 200-day Exponential Moving Averages (EMAs), clustered between roughly $256 and $280.

The break and subsequent rally above these resistance lines reinforce a constructive structural backdrop, adding confluence to the bullish narrative. 

The Relative Strength Index (RSI) at about 79 on the 4-hour chart shows a strong and overbought condition.

At the same time, the Moving Average Convergence Divergence (MACD) indicator remains firmly positive on the same chart, suggesting that bullish pressure remains dominant despite the recent overextended surge.

If the bears gain control, ZEC would likely face an initial support at the recent price pivot around $342, where any shallow pullback could attempt to stabilise.

A break below that level could see the bulls forced to defend the Thursday low of $310 over the coming hours or days. 

The 100-day EMA near $280 down to the 200-day EMA around $275, with the 50-day EMA lower at $256, all offer additional dynamic floors.

It is highly unlikely that ZEC loses this broader band of support in the near term as doing so would expose the broken downward trendline area near $207 as the next major support region.

However, if the rally persists and ZEC breaks out above the $400 resistance, it would target the $450 January 15 high of $450.

An extended rally would allow ZEC to hit the $500 psychological level for the first time since January 6.