The cryptocurrency market took a significant step back over the past 24 hours after US inflation came in higher than expected (among other reasons).
Bitcoin (BTC) dipped 3% on a daily basis, while popular altcoins like Zcash (ZEC) posted double-digit declines. However, several analysts remain optimistic about the privacy coin and see the pullback as a buying opportunity.
New Rally Incoming?
ZEC is down approximately 15% for the day and currently trades below $1,100 (per CoinGecko). Its market capitalization fell to nearly $18.3 billion, yet the asset remains one of the 10 biggest cryptocurrencies. Interestingly, its recent downfall doesn’t seem like bad news to some analysts. X Finance Bull said he sold his entire ZEC position earlier this year when the price hit $1,500.
“My reason was simple: there had been almost no real correction since $500, and I didn’t see the utility expanding enough to justify chasing it higher,” he explained.
The latest correction, though, has changed the analyst’s plans, and he said he’s going back to the ZEC chart and fundamentals because he sees a potential setup developing.
“We prepared before the fear came. Now the market is giving us the prices. The next leg of this bull market is coming. We’re ready,” he concluded.
Altcoin Sherpa – a popular X user with over 260,000 followers also chipped in. The analyst closely watched the privacy coin’s price chart, describing a slump to $1,000 or lower as a “gift.” Jesse Olson joined the topic, too. He predicted the asset’s valuation could head south toward $900 in the short term, then stage a major recovery to as high as $1,600.
Monitoring These Indicators
ZEC’s Relative Strength Index (RSI) favors the rebound scenario. The ratio fell to 30, suggesting the asset is in oversold territory and could be on the verge of a pump. The index runs from 0 to 100, where anything above 70 typically signals an impending correction.
On the other hand, ZEC’s exchange netflow signals that the red wave may intensify in the near future. According to CoinGlass, inflows have surpassed outflows over the past few weeks, meaning some investors have moved holdings from self-custody to centralized platforms, increasing immediate selling pressure.
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