Zcash Rally May Be Overextended, Analyst Warns
Zcash (ZEC) has seen a remarkable price surge of approximately 65% over the past week, leaving traders and investors eager to know what's next. However, prominent crypto analyst Crypto with Haris is sounding cautionary notes about the rally.
In his recent analysis shared with his 650,000 followers, the analyst pointed out that ZEC's fair value could be below $500, despite its current price levels. This assessment comes after a critical vulnerability was discovered in Zcash a few months ago, which allowed counterfeit ZEC to be created.
The issue led to an emergency upgrade, causing ZEC's price to drop from $624 to $309 within 48 hours. This incident undermines confidence in the asset's long-term value and raises questions about its fundamental security.
Additionally, technical indicators suggest that ZEC is currently overheated, with a relative strength index (RSI) above 85 indicating overbought conditions. The price is also well above the daily moving average, further supporting the overheating thesis.