The revolution in blockchain technology provided cryptocurrency investors with a promise of privacy and confidentiality. They trusted in the robustness of these scientific algorithms to secure their transactions. Yet, despite the robust security, it’s possible to track digital activity in cryptocurrencies like Bitcoin, where the blockchain can reveal wallet addresses of both the sender and the receiver. Amid this, Zcash becomes a robust choice among crypto investors. Unlike others that openly display transaction histories and holdings, Zcash ensures complete privacy for its shielded transactions. It also offers selective disclosure options, allowing users to share transaction details for purposes like compliance or auditing. Additionally, Zcash supports transparent transactions that are fully compatible with shielded addresses. In a recent update, Zcash simplified its user experience by introducing a unified address format, eliminating the need for multiple address types and enhancing interoperability among wallets and exchanges. This distinction is similar to the difference between HTTP and HTTPS protocols, where the latter’s “S” signifies additional encryption for enhanced transaction safety and confidentiality. However, in recent days, there has been an increased regulation on Zcash as it got delisted by OKX and Binance is strictly monitoring the privacy coin, giving threats of another delist. Amid this bearish sentiment, Zcash price prediction aims to provide an in-depth technical analysis of the current ZEC price sentiment for a better investment opportunity.
Zcash (ZEC): A Quick Overview
Zcash, launched by the Electric Coin Company (ECC) on October 28, 2016, is built on the Bitcoin blockchain codebase. It arrived two years after Monero (XMR), another privacy-centric cryptocurrency, addressing market demands for anonymous transactions. Unlike Bitcoin (BTC), where transactions on the blockchain can expose wallet addresses, Zcash encrypts transaction details.
Using Bitcoin’s ledger system, Zcash employs a cryptographic technique called zero-knowledge proofs, allowing users to conduct anonymous transactions. The specifics of these transactions are encrypted and only accessible to those with authorized access.
From 2016 to 2018, Zcash implemented the “Sprout Series” of upgrades, featuring two major protocol enhancements: Overwinter and Sapling. In March 2017, the Zcash Foundation was established, initially funded with 273,000 ZEC from the “Founders Reward.” This foundation conducted the extensive multi-party computation ceremony known as the Powers of Tau Ceremony.
December 2019 saw the Blossom upgrade, Zcash’s third network enhancement, which reduced the target block interval to 75 seconds. Subsequently, the fourth and fifth network upgrades, named Heartwood and Canopy, were rolled out in July and November 2020, respectively. Following the first halving event in November 2020, Zcash discontinued the “Founders Reward” and decreased the mining reward from 6.25 ZEC to 3.125 ZEC.
Zcash: Working Module And PoS Transition
ZCash operates on a Proof-of-Work (PoW) consensus mechanism, where the addition and verification of blocks on the blockchain are achieved by solving complex mathematical puzzles. However, there are ongoing considerations to shift to a Proof-of-Stake mechanism, where block addition would depend on the amount of ZEC held by individuals.
To safeguard user privacy, Zcash employs a technology known as Zero-Knowledge Succinct Non-Interactive Arguments of Knowledge, or zk-SNARKs. This innovative feature allows for the verification of transactions without disclosing the addresses involved or the transaction amounts.
As for the ZEC cryptocurrency itself, it serves as the medium of exchange for transactions within the network. Additionally, Zcash is available for purchase, sale, and trading on various cryptocurrency exchanges.
Upcoming PoS Transition
ECC plans to transition Zcash from its current Proof-of-Work (PoW) protocol to Proof-of-Stake (PoS) by 2024. This change will allow ZEC holders to act as validators or miners on the blockchain, with their processing capability being proportional to their stake. In PoS, miners’ ability to process transactions is limited to a percentage that corresponds to their token holdings, rather than solving complex puzzles as in PoW.
This shift is expected to significantly reduce the energy consumption associated with mining, as well as lessen the dependence on specialized hardware like application-specific integrated circuits (ASICs), which are currently used in PoW’s computational processes. Additionally, this transition may stabilize ZEC’s price volatility, as users won’t need to sell their tokens to cover high energy costs incurred in PoW mining.
The introduction of ASIC miners to the Zcash network in 2018 led to a notable shift. Many miners moved away from the slower graphic processing units (GPUs) to mine Zcash, resulting in an 80% decline in network activity. “The arrival of ASIC miners on the Zcash scene in 2018 significantly impacted the network. The activity on the Zcash chain fell sharply as numerous Zcash users were compelled to stop using their GPU miners, which they previously employed for acquiring ZEC,” ECC noted.
Recent Delisting And Monitoring Concerns
Cryptocurrency exchange OKX announced plans to delist trading pairs of privacy tokens such as ZCash (ZEC), leading to a slump in values. The delisting followed OKX’s Token Delisting / Hiding Guideline and user feedback, as mentioned on their website. While OKX did not specify the reason for removing these tokens, it’s notable that many of them offer enhanced transaction privacy. Privacy coins, characterized by their ability to conceal the flow of funds and the parties involved in transactions, have faced scrutiny from regulators due to their anonymity-preserving features.
Additionally, Binance has also taken steps to regulate these privacy coins including Zcash recently by adding a ‘monitoring tag.’ Binance highlighted that tokens marked with a “monitoring” tag demonstrate significantly greater volatility and risks than other tokens on their platform. These tokens are also at risk of failing to meet Binance’s listing criteria, which could lead to their delisting.
The exchange further explained that tokens under the monitoring tag undergo regular evaluations. Key factors assessed during these reviews include trading volume and liquidity, the stability and security of the token’s network, and the token’s role in developing a healthy and sustainable cryptocurrency ecosystem. Additionally, the token’s compliance with Binance’s periodic due diligence requests is also a critical aspect of the review process.
Zcash (ZEC) Price Forecast: Price History
Now, let’s dive into some notable moments in Zcash’s price history, both highs and lows. While it’s important to remember that past performance doesn’t guarantee future results, understanding Zcash’s past can offer valuable context for Zcash price predictions.
Zcash, an established cryptocurrency, made its debut on October 29, 2016. On that very day, it reached an all-time high of $5,941, a milestone it hasn’t come close to replicating since. In 2018, Zcash experienced a resurgence, hitting $880 on July 1st. However, it swiftly corrected itself and remained below $100 for the next two years, eventually hitting an all-time low of $18.94 on March 13, 2020.
The bull market of 2021 brought renewed gains for Zcash, with a steady climb in the first quarter leading to a peak of $370.14 on May 12th. However, the privacy coin soon retreated, closing the year at $146.56.
While 2022 saw Zcash succumb to the bear market, there was a glimmer of hope at the start of the year. In a March announcement, US President Joe Biden acknowledged the importance of privacy in the context of digital assets, stating, “The United States should ensure that safeguards are in place and promote the responsible development of digital assets to… maintain privacy.” This prompted a rally in Zcash, reaching a high of $195.78 at month’s end.
Unfortunately, this momentum couldn’t be sustained, and the coin continued to decline throughout the year, hitting a 52-week low of $34.16 on November 9th, following a broader market downturn following the collapse of Sam Bankman Fried’s cryptocurrency exchange FTX. By December 31st, it was valued at $37.34, marking an annual loss of nearly 75%.
2023 has proven to be another challenging year for Zcash. Although it initially climbed to a high of $51.14 on February 20th, it struggled to maintain this position. On June 10th, ZEC reached a low of $23.20, following Crypto.com’s suspension of its US institutional operations, which came after the news that the United States Securities and Exchange Commission was suing the Binance and Coinbase crypto exchanges.
There was a slight recovery thereafter, with ZEC reaching $34.59 on June 30th, but it has been on a downward trajectory since, bottoming out at $24.04 on September 11th. In mid-September, there was a modest rebound, and on September 20, 2023, the coin was valued at approximately $26. However, due to the ‘Uptober’ trend and Bitcoin’s recent surge above $45,000, the altcoin managed to climb above $30. Nevertheless, it has recently faced a sharp decline due to concerns over delisting.
Zcash Price Prediction: Technical Analysis
Recently, the ZEC price experienced intense bearish sentiment following delisting and $600 million market crash, which has triggered sellers near the immediate support levels. The price has made a solid breakdown below $26 as the BTC price touched a low of $41K. However, following recent delisting, Zcash price declined further despite the market’s recovery, creating another wave of selling pressure. In recent days, the price has been facing robust rejections as it lost buyers’ confidence. A thorough technical analysis of the ZEC coin price reveals bearish indicators, which may soon send the price to new lows.
According to Coinmarketcap, the Zcash price is currently trading at $22.8, reflecting a decrease of 2.69% in the last 24 hours. Our technical evaluation of the ZEC price indicates that the current bearish momentum may soon intensify as bears are attempting to plunge the trend from the upcoming support at $21; however, bulls are trying to prevent the price from dropping below the immediate Fib channels. Examining the daily price chart, the ZEC coin price has found support near the 23.6% Fib level, above which the price is holding buying momentum and attempting to recover above Fib channels. As Zcash price continues to trade below the EMA20 trend line, sellers are gaining confidence to open further short positions and send the price to test $20. The Balance of Power (BoP) indicator is currently trading in a negative region at 0.62 as sellers are increasing their domination on the price chart.
To thoroughly analyze the price of a Zcash, it is crucial to take a look at the RSI-14 indicator. The RSI indicator recently experienced a decline as the ZEC price failed to meet buyers’ demand near resistance channels. The trend line is currently hovering around the oversold region at level 26, hinting that further downward correction is on the horizon. However, the oversold RSI suggests that ZEC price will soon attempt a correction to break above its immediate Fibonacci level and head toward short-term bullish goals of around $30. If bears fail to plunge below the current 0.038 Fibonacci region, an upward trend might be on the horizon.
As the SMA-14 continues its swing by trading at 27, it trades slightly above the RSI line, potentially holding promises about the coin’s upward movement on the price chart. If Zcash’s price makes a bullish reversal above EMA20, it can pave the way to resistance at $28. A breakout above will drive the coin’s price toward the upper limit of the Bollinger band at $32 and then to $36.
Conversely, if Zcash fails to hold above the critical support region of $21, a sudden collapse may occur, resulting in further price declines and causing the coin’s price to trade near the Bollinger Band’s lower limit of $17. If the price fails to continue a trade above, it may trigger a more significant bearish downtrend to $11.
Zcash Price Prediction By Blockchain Reporter
Zcash Price Prediction 2024
The price of Zcash is predicted to reach a minimum level of $33.38 in 2024, with a maximum expected price of $41.42 and an average price of $34.37 throughout the year.
Zcash Price Prediction 2025
In 2025, the price of Zcash is forecasted to be at a minimum value of $46.20, while it could reach a maximum of $57.40, with an average trading value of $47.58 in USD.
ZEC Price Forecast for 2026
For 2026, the price of Zcash is predicted to reach a minimum value of $66.75, with a potential maximum value of $80.06 and an average trading price of $69.13.
Zcash (ZEC) Price Prediction 2027
In 2027, the price of Zcash is predicted to reach a minimum level of $93.16, with a maximum potential of $113.73 and an average trading price of $96.61.
Zcash Price Prediction 2028
The Zcash price is forecasted to reach a minimum level of $135.15 in 2028, with a potential maximum level of $163.71 and an average forecasted price of $139.02.
Zcash Price Prediction 2029
In 2029, the price of 1 Zcash is expected to reach a minimum level of $191.16, with the possibility of reaching a maximum level of $230.15, and an average price of $198.12 throughout the year.
Zcash (ZEC) Price Prediction 2030
For 2030, the price of Zcash is predicted to reach a minimum level of $283.63, with a potential maximum level of $331.85 and an average trading price of $293.54.
Zcash Price Forecast 2031
In 2031, the Zcash price is forecasted to reach a minimum possible level of $420.21, with a maximum possible level of $492.56 and an average forecasted price of $434.89.
Zcash (ZEC) Price Prediction 2032
The price of Zcash is predicted to reach a minimum value of $616.36 in 2032, with a potential maximum value of $728.45 and an average trading price of $638.10.
Zcash Price Prediction 2033
In 2033, the price of Zcash is expected to reach a minimum price value of $886.28, with a potential maximum value of $1,069.80 and an average value of $918.18.
Zcash Price Prediction: By Industry Experts
According to Coincodex’s Zcash price prediction, the value of Zcash is expected to increase by 1.21%, reaching $23.03 by January 11, 2024. The technical indicators suggest a Bearish current sentiment, and the Fear & Greed Index indicates a score of 70, denoting Greed.
In the past 30 days, Zcash experienced 50% green days and a price volatility of 7.23%. Coincodex’s forecast advises that it is currently not an opportune time to purchase Zcash. Looking at the historical price trends of Zcash and BTC halving cycles, the lowest projected price for Zcash in 2025 is estimated to be around $20.10. Furthermore, the prediction suggests that the price of Zcash could soar to a high of $44.81 in the following year.
According to Digital Coin Price’s analysis, the forecast suggests that the price of ZEC (Zcash) could surpass $55.31 in 2025. By the year’s end, the minimum expected price of Zcash is projected to be $48.70, with the potential to reach a maximum of $58.64.
Looking further ahead, the analysis predicts that by 2033, the price of ZEC could exceed $433.36. At the close of 2033, Zcash’s value is anticipated to be at least $431.46, with the possibility of achieving a peak price of $445.36.
Is Zcash A Good Investment?
It’s challenging to predict the ideal time for investing in Zcash. The strategy of buying during price dips is uncertain here, as it’s unclear when Zcash’s dip will end or how deep it will go. Adding to the uncertainty are concerns about potential delisting and scrutiny from Binance, which could weaken investor confidence and lead to a significant decline in Zcash’s value.
Additionally, although Zcash is planning a transition to a Proof-of-Stake consensus mechanism, the timeline for this change is not defined. On the brighter side, Zcash has a strong community base and transparent management, indicating potential for future growth.
As with any investment in cryptocurrencies, it’s essential to conduct thorough research and consider your own investment goals before making a decision about investing in ZEC.
Conclusion
Zcash is self-funded and features a strong community governance structure that is well-aligned with the incentives of its key stakeholders. Its governance system is both inclusive and designed to resist external capture. The introduction of the Canopy upgrade in 2020 initiated a community development fund that will continue through 2024. Additionally, the Major Grants fund has set aside at least $20 million dedicated to future Zcash development, enhancing the decentralization of the ecosystem.
A significant concern raised about Zcash is its possible exploitation as a secure medium for illicit transactions by cybercriminals, particularly on the dark web. In response, Zcash has highlighted various legitimate uses of its platform. These include scenarios like individuals with chronic medical conditions purchasing medication anonymously, businesses safeguarding their trade secrets or supply chain details from competitors, and other lawful activities that require privacy.
