The cryptocurrency market has resumed its upward trajectory after the slight dip on Tuesday.
Bitcoin, the leading cryptocurrency by market cap, is back above $70,000, while Ether is approaching $2,200.
Meanwhile, ZEC, ZCash’s native coin, is up 5%, making it one of the best performers among the top 30 cryptocurrencies by market cap.
The coin could continue its rally after adding 11% to its value since the start of the week.
Derivatives data show a buildup in demand for ZEC futures, with Open Interest rising by double digits over the last 24 hours.
Retail interest pushes ZEC’s price higher
ZEC is up by 5% in the last 24 hours and is trading above $235 thanks to growing retail demand.
The United States is inclined to ease pressure in the Middle East through peace talks and a one-month ceasefire.
This has boosted sentiment in the broader crypto market, with ZEC one of the best performers over the last few hours.
According to CoinGlass, the ZEC futures Open Interest (OI) is up over 16% in the last 24 hours, reaching $413.71 million, indicating a surge in the notional value of Zcash perpetual contracts driven by leverage exposure.
In addition to that, data obtained from CryptoQuant shows increased interest from large wallet investors.
Average order sizes have increased across spot and futures markets.
However, the spot taker Cumulative Volume Delta (CVD), the difference in market buy and sell volume over the last 90 days, indicates sell-side dominance.
This signals looming overhead selling pressure.
Technical outlook: ZCash targets a breakout above $290
The ZEC/USD 4-hour chart is bullish but inefficient thanks to the rally recorded earlier this week.
At press time, ZEC is trading at $238, with the daily candle closing above the $231 resistance level.
The near-term bias is neutral with a mild bullish tilt, as price holds above $220 following the sharp rebound from sub-$200.
Currently, ZEC is fluctuating within the broader triangle defined by a long-standing descending resistance trendline and a rising support trendline on the daily chart.
If the bullish trend persists and the daily candle closes above the $265 resistance level, it would confirm a bullish breakout, paving the way for further upward movement.
The $290 swing high would serve as another major resistance in the near term.
The bulls would target the 23.6% Fibonacci retracements level at $362 in the event of an extended rally.
The Moving Average Convergence Divergence (MACD) line remains above the signal line as both approach the positive territory, indicating a growing bullish momentum.
The Relative Strength Index (RSI) at 57 reflects a growing positive condition after recovering from the mid-40s.
On the flip side, if the bulls fail to push above the $290 swing high, the key support for Zcash remains the support trendline near $200.
An extended bearish condition could see ZEC retest the next major support at $160.
The post Zcash jumps 5%: is rising Open Interest fueling the rally? appeared first on Invezz
