Zcash (ZEC) has become one of the best performing companies in the cryptocurrency market, with its price surging 109% as the overall digital asset situation improves.
The surge came as the privacy-focused cryptocurrency appears to be moving independently of Bitcoin, breaking the historical correlations that have often determined its price trends.
Zcash pulls away from King
The correlation between Zcash and Bitcoin has dropped to just 0.02, indicating an almost complete decoupling from the world’s largest cryptocurrency. This low correlation means that ZEC’s price movements are largely unaffected by Bitcoin’s volatility. This independence allows Zcash to follow its own trajectory based on internal market conditions rather than BTC’s broader trends.
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Once the correlation drops below zero, Zcash will officially start moving in the opposite direction to Bitcoin. This is a very positive sign considering BTC’s recent stagnation. This independence strengthens Zcash’s position as an outstanding performer during a period of mixed market sentiment.
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Despite the strong upward trend, Zcash’s liquidation map highlights potential risks. A break below the nearest support level at $224 could result in a liquidation of around $9 million. This suggests that traders holding leveraged positions could face significant losses if the market sees even a small correction.
The recent surge may also indicate that ZEC is nearing near-term saturation point. As this asset records higher returns, investors may begin to book profits, historically leading to a benign correction. If profit-taking accelerates, liquidations could exacerbate volatility and create short-term downward pressure.
ZEC price may continue to rise
At the time of writing, ZEC is trading at $266, holding firm above the support at $224, but facing resistance at $290. The crypto token is likely to maintain its range-bound pattern as it consolidates recent gains.
If the bullish momentum continues, Zcash could expand above $290 and target $338. Such a move would confirm strong investor confidence and strengthen the asset’s weaning from Bitcoin’s influence.
However, if there is a change in sentiment or heavy profit-taking, ZEC could fall below $224, leading to a forced liquidation and dropping to $176. Such a decline would invalidate the bullish outlook and highlight the risks associated with rapid gains in a volatile market.
