Investigating the bull case for Zcash as the rest of the sector remains muted

Zcash offers privacy protections in the crypto sector

Its native token ZEC is down 22% in a week

Zcash’s native token remains bearish as the price breaks below key support levels.

The advent of crypto promised one thing to financial ecosystems. The ability to safeguard the anonymity of users when transacting on various networks. It then follows that privacy protocols such as Zcash ZEC/USD had a place in the crypto sector.

Zcash is a privacy-focused blockchain network. The protocol originated from the Bitcoin network in 2016. Zcash provides two types of addresses, which are transparent addresses and shielded addresses. Transparent addresses are publicly visible on the network. Shielded addresses are more private. Besides, Zcash uses zero-knowledge proofs to make the contents of a transaction private. 

After exponential 2021, the price of Zcash crashed this year. The coin currently trades at $54, despite having topped $300 in November 2021. Zcash has fallen by 18% in the last 7 days. The declines are across the board in crypto. The decline of Zcash suggests that privacy coins still have ground to cover.

Zcash maintains a bearish momentum with no end in sight

Source – TradingView

Technically, Zcash remains in a bear market. The price broke below the key support of $84, making a bear case strong. Another minor support of $58 was also broken, and the crypto token is proceeding lower.

Technical indicators also suggest that the bear market for Zcash is strong. Both the 14-day and 21day moving averages remain above price. It suggests an unlikely bullish reversal in the short and medium-term. The MACD indicators also remain in bear territory. We expect further declines in Zcash.

Summary

Zcash is a privacy-focused network. Its native token has crashed this year and is down 22% in a week. The crypto-token will remain bearish in the short-and-medium term.

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