Zcash Surges 12% Breaking $40 Resistance

Privacy-focused digital currency Zcash (ZEC) has recently surpassed a critical resistance level, indicating potential for further gains. Since February, ZEC has been trading within a narrow range, with sellers dominating above $40 and buyers finding support near $25. This sideways movement has kept the price within a defined zone, with no significant breakthroughs until recently.

On Sunday, buyers successfully pushed through the long-held supply zone of $40-$43, reaching a high of $45.80 on a major crypto exchange. This breakout is significant as it suggests a release of stored energy, often resulting in a sharp and rapid upward movement. Technical analysis theory supports this notion, suggesting that adding the range width to the breakout point could indicate a rally toward $60 for ZEC.

Price movements through long-held resistance levels, as seen with ZEC, often attract breakout traders. These traders aim to capitalize on continued price movements beyond defined support or resistance levels. The recent breakout in ZEC's peer, Monero (XMR), which surged to highs above $300 after a bullish golden cross, serves as a reminder that chart patterns do not always work as intended. However, the current bullish signal for ZEC is a positive indicator for those invested in the privacy-focused digital currency.