In the past few days, the market has been sluggish, with most cryptocurrencies lying still. Unexpectedly, ZEC suddenly popped up, soaring to nearly $59 in one go, with an intraday increase of over 8%, forcefully squeezing into the leaderboard of gains. This kind of movement, in such a lifeless market, stands out exceptionally.
In fact, ZEC is a cryptocurrency that doesn't usually attract much attention; it belongs to the privacy coin sector and has its own technology and community. However, when the market lacks liquidity, pushing it up often doesn’t indicate that big funds are optimistic; rather, it resembles a situation where existing funds have nowhere to go and can only find a small, easily manipulated target to make a short-term play. Look at its trading volume; although it has surged, the actual transaction amount is just over four hundred thousand dollars, indicating that the amount of participating funds is not large.
From a technical perspective, MACD and EMA indeed show short-term upward momentum, and RSI is also relatively strong, making it seem like there might be further upward movement. However, the issue is that these surges often lack sustainability—overall market liquidity is insufficient. Once the number of people chasing the highs decreases or the main funds choose to take profits, a rapid correction can easily occur. Moreover, ZEC itself faces significant regulatory risks, especially since the EU is not very friendly towards privacy coins. In the long run, policy risks continue to loom overhead.
So, don't be fooled by its current rise; cryptocurrencies that suddenly surge in this kind of market are often 'fast to come, fast to go.' If you haven't already positioned yourself early, chasing the high now carries more risk than opportunity. In the coming days, it is highly likely to experience a significant correction again, and I advise everyone to stay calm and not be blinded by short-term gains.
In this market environment, it is better to miss out than to chase blindly. Protect the principal and wait until the major trends are clear before taking action; that is the prudent approach.$ZEC
