ZCash Price Forecast: Why ZEC Could Rebound to Over $600

Highlights:

• ZCash appears to be stabilising after ECC-triggered panic selling
• Price stabilisation driven by news that the ex-ECC team is still committed to ZEC
• Investors buying the dip could see ZCash rally back to $699, or higher 

ZCash (ZEC) has been one of the top trending cryptocurrencies in the last 48 hours, as investors focus on its governance issues. In the same period, the price has crashed by 16%, making it one of the worst performers among the top 100 cryptocurrencies. Intraday, ZCash price action remains weak but is stabilising. 

At the time of writing, ZCash was trading at $446.31, down by 2.96%. At the same time, ZCash trading volumes have shot up by 86.18% to stand at $1.44 billion. Such a substantial increase in volumes at a time when the price is dropping could be a hint at panic selling.

ZCash Panic Selling Triggered By Issues at Electric Coin Company 

ZCash panic selling in the last 48 hours has mainly been driven by the exit of the core development team at the Electric Coin Company (ECC). The exit by the team, which is essentially the primary engineers driving ZCash development, triggered fears that ZCash may not have much of a future. That’s because investors feared a stalling of technical developments.

There is also the speculative lot who see this as a loss of brand image that could reduce demand for ZEC going into the future. As such, there has been an uptick in short selling, which is adding pressure on ZCash in the short term. However, if intraday price action is anything to go by, the worst may be over for ZCash, and a rebound is on the horizon. 

Ex-ECC Engineers Still Fully Committed to ZCash

One of the factors that could trigger a ZCash rebound is the fact that the team that exited ECC is not abandoning ZCash. They have simply formed a new company that will continue work on ZCash. For context, it has already been revealed that they are working on a wallet that is focused on ZCash.

The wallet also has a privacy-first user interface, a factor that could help draw in more privacy-focused investors to ZCash long term. As more investors get to understand that what is happening at ZCash is a governance and not a protocol issue, the demand will flow back.

Team Commitment to ZEC Creates Buy-The-Dip Opportunities

Additionally, now that it is out in the open that the former ECC team is still on ZCash, speculators are likely to see an opportunity in ZCash price action. Savvy investors, now fully aware of the issue, are likely to treat the price drop as a buy-the-dip opportunity. This is already evident in the ZCash price action intraday, where it is regaining some upside momentum. As more buyers come in, a short squeeze could follow and put ZCash back on a bull trend.

Investor Appetite for ZCash and Other Privacy Coins Still High

Such a rebound is also supported by the fact that the appetite for privacy coins is still strong in the market. This is evident in the fact that Monero, one of ZCash’s closest competitors, is in a solid bull trend. Monero is making higher lows, and if the trend continues, it could be headed to new all-time highs. Given that Monero has also faced its own fair share of issues in the past and bounced back, the same can be expected of ZCash. That’s because ZCash is known for its solid privacy features and is one of the most accessible privacy coins in the market today.

Technical Analysis – ZCash Price Consolidating After Selloff

ZCash is currently entering a consolidation between the $527.19 resistance and $340.85 support. This is after the ECC debacle failed to push the price to the $340.85 support, or lower. If bulls regain control as confidence returns, a rally through the $527.19 resistance could follow. In such a case, ZCash could rally to $699.80 in the short term. 

On the other hand, if bears take control and push ZCash through the $340.85 support, the bullish structure would be broken. In such a case, ZCash could drop to $231.01 or lower in the short term. Of these scenarios, the odds are higher for a rally to $699. That’s because it is now known that the team that left ECC is still fully committed to ZCash.