Zcash (ZEC) is exhibiting indicators of coming into an excessive bubble section, based on a latest on-chain evaluation. Present buying and selling metrics exceed these recorded throughout its 2021 bull run peak.
On Tuesday, Ki Younger Ju, CEO of on-chain information platform CryptoQuant, posted the sobering evaluation on his X account. In doing so, he warned retail buyers in regards to the dangers. He bluntly acknowledged, “Sorry, but you’re retail if you’re buying Zcash now.”
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CryptoQuant CEO Points Stark Warning
The CEO shared a chart titled ‘Zcash: Spot Volume Bubble Map’ which tracks ZEC’s buying and selling quantity towards its value since January 2020. On this visualization, the dimensions of the circles signifies buying and selling quantity, whereas the colour displays the quantity change charge (cooling, impartial, heating, or hyper-heating).
Zcash: Spot Quantity Bubble Map. Supply: CryptoQuant
The chart’s core interpretation depends on recognizing a Distribution Part. This section is late in a bull cycle when buying and selling quantity is exceptionally excessive, however value appreciation is sluggish. This signifies that new buyers are coming into the market, main to an enormous turnover, or “handover,” of tokens from seasoned holders.
The chart reveals a pointy interval of excessive turnover that lasted about six months in the course of the first half of 2021, when ZEC surged towards $300 per coin. This section finally preceded a market-wide downcycle, which led to a value collapse and main losses for buyers who purchased ZEC on the finish of the rally.
Present Metrics Surpass 2021 Peak
Essentially the most alarming discovering is that the newest ZEC buying and selling quantity and value motion register a bigger bubble measurement than the one seen within the first half of 2021. If the broader cryptocurrency market is certainly within the ultimate stage of its cycle, the analyst warns {that a} repeat of the 2021 collapse is extremely doable.
ZEC has attracted huge consideration just lately, hovering by over 750% within the final three months. The cryptocurrency’s seemingly inexplicable rally has spurred value will increase throughout all the privateness coin sector.
Excessive-profile figures have amplified the speculative frenzy surrounding ZEC. Former BitMEX CEO Arthur Hayes posted on X on October 26 that he expects the ZEC value to climb to as excessive as $10,000 per coin. On the time of this report on Tuesday, ZEC is buying and selling round $328, up from $308 when Hayes made his prediction.
