Will the price of Zcash (ZEC) check back to the $500 level after nearly 8 years?

Zcash (ZEC) is emerging as one of the most impressive anonymous coins in recent times, thanks to a new wave of interest in decentralized privacy.

As market sentiment becomes increasingly positive, the rise of ZEC is expected to soon test the 500 USD threshold — a price that has not been reached in over 7 years and 9 months.

Investors Full of Expectations

Investor confidence in Zcash is increasing significantly, as evidenced by the strong rise in market sentiment. This indicator shows a prevailing optimism towards the privacy-focused altcoin, reflecting growing expectations for the short-term outlook of ZEC.

In the context of ongoing uncertainties regarding cryptocurrency regulations, investors are turning to anonymous coins like Zcash, making ZEC a notable highlight in the market. Continuous inflows of capital coupled with spreading optimism indicate that ZEC may continue to face upward price pressure in the near future.

ZEC Weighted Sentiment Index | Source: SantimentRegarding technical analysis, the macro momentum of Zcash further reinforces this bullish trend. The Chaikin Money Flow (CMF) indicates a steady inflow of money, confirming strong investor interest. However, the CMF is currently approaching the overbought threshold (from 20.0 to 25.0), warning that the market may soon reach a saturation state.

History shows that ZEC tends to adjust when the CMF crosses this threshold. This means that, although the upward trend is still dominant, a short-term correction could very well occur as ZEC approaches the important psychological resistance level of 500 USD.

ZEC's CMF index | Source: TradingView## ZEC aims to conquer key resistance levels.

Currently, the price of ZEC is trading around 483 USD. This altcoin has recorded a strong increase over the past month, firmly maintaining the support level above 400 USD — a crucial foundation for the current upward trend.

If the upward momentum continues to be maintained, Zcash has a strong possibility of surpassing the 500 USD mark and approaching the 550 USD threshold for the first time in nearly 8 years, before facing profit-taking pressure. The re-establishment of this price level will mark an important milestone for ZEC.

ZEC Price Analysis | Source: CoinphotonHowever, if selling pressure appears early, ZEC may not hold above $450 and risks falling below $400, potentially testing the support region of $344. This scenario would weaken the short-term bullish outlook and signal a period of accumulation before ZEC could recover.

Mr. Teacher