Zcash Soars 65% to 8-Year High, But Analyst Sees Crash Looming

Zcash (ZEC) has reached an 8-year high after its price surged by nearly 65% in the past week, making it one of the best-performing top 100 cryptocurrencies. The current price is around $812.67 per coin.

The cryptocurrency market's resurgence is attributed to several factors, including monetary policy changes announced by the US Treasury Department. ZEC has caught the green wave and rallied harder than other popular cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), and XRP.

One catalyst for ZEC's rally was a recent announcement from Grayscale that they are discussing with DCG subsidiary over a contribution of around 200,000 ZEC to their Zcash Trust. This product would be converted into an ETF, set to launch on August 25.

ZEC's price briefly jumped to $880 on August 23, the highest mark since January 2018. However, Crypto with Harris ₿ warns that a major crash could come next due to ZEC's 'real value' lying below $500. They argue that the current price is well above daily averages and the upper Bollinger Band, indicating an extremely stretched move.

Crypto with Harris ₿ also points out that recent exchange net flow data shows inflows far outpacing outflows, which could increase immediate selling pressure.