ZEC, the native token of the privacy-focused Zcash protocol, has increased by 23% in the past 24 hours, becoming the biggest gainer in the market. It has surpassed key assets such as Bitcoin and Ethereum, with gains of 1% and 3% respectively over the same period.
Currently trading at a two-year high of $56.93, ZEC appears poised for further growth. Below is the reason why.
Zcash grows thanks to Tornado Cash
ZEC’s double-digit increase reflects an increase in the value of security tokens over the past 24 hours, influenced by an important decision from the US federal appeals court.
The court lifted Treasury Department sanctions against Tornado Cash, a cryptocurrency mixing service that was targeted by the Office of Foreign Assets Control (OFAC) in 2022 for allegedly supporting illegal activities. illegal action.
The ruling found that OFAC overstepped its authority, emphasizing that Tornado Cash’s immutable smart contracts should not be considered “property.” Since this ruling, the market capitalization of leading security tokens has increased by 4%.
ZEC Positive Response
As of press time, ZEC trades at $56.93, a price it last reached in October 2022. This surge is accompanied by a significant increase in trading activity , with volume reaching $175 million in the past 24 hours, marking a 68% increase.
When an asset’s trading volume increases along with its price, it indicates strong market interest and increased activity among buyers and sellers. This combination hints at a sustained rally. The increased trading volume reflects large liquidity flows and widespread participation in the market rally.
ZEC’s Aroon Up line on the daily chart confirms the strength of its uptrend, which is currently at 100%. The Aroon indicator measures the strength and direction of a trend by tracking the time since the last high (Aroon Up) and last low (Aroon Down) over a given period.
The Aroon Up value of 100% shows a recent new peak, indicating strong upward momentum. In the case of ZEC, the Aroon Down line is 7.14%, reflecting minimal bearish pressure and continuing to support the bullish trend.
ZEC Price Forecast: A New Peak in sight?
If the current rally continues, the ZEC Token price will form support at $57.20. Successfully achieving this could push its price up to $66.98, a level it last touched in September 2022.
However, if profit-taking begins, the ZEC Token price could drop to $49.29.