Will Zcash price rise above $300 after confirming bullish reversal pattern?

Zcash price shot up over 25% on Tuesday, outpacing the broader crypto market and taking the spot of the leading gainer of the day.

According to data from crypto.news, Zcash (ZEC) price briefly hit a daily high of $288.12 on March 17, bringing its market cap to over $4.78 billion. Trading at $273 at press time, the privacy token still remains 34% higher than its weekly low and 41% above its lowest level this month.

Zcash’s sharp surge appears to have been fueled by investor interest after the privacy token’s price confirmed a multi-month falling wedge breakout on the daily chart.

Falling wedges are formed with two descending and converging trendlines, and a confirmed breakout from the upper trendline of the pattern has historically served as the precursor to sustained rallies over subsequent sessions.

Other technical indicators appear to support a potential bullish outlook for the token. Notably, the Supertrend has flipped green, which occurs when the price closes above the volatility-based resistance level, signaling that the short-term trend has shifted back to the buyers.

At the same time, the MACD lines have also formed a bullish crossover and are on the verge of moving above the zero line. When such a move occurs, it means that the positive momentum is accelerating and the asset is entering a more aggressive bullish phase.

As such, Zcash price eyes a rally to $318 next, a target that aligns with the 23.6% Fibonacci retracement level. If bullish momentum lasts, bulls could push the price toward $400, where the next key psychological resistance lies.

Zcash has several bullish catalysts lined up that could help it sustain its uptrend.

First, the total amount of ZEC held in shielded pools has hit a new record high of $5.15 billion in March, a figure that equals 31% of the total circulating supply. A jump in shielded liquidity suggests that a greater number of holders are now using Zcash’s core privacy features, which translates to genuine utility and more demand for the token.

Second, Zcash’s hashrate surged to a new all-time high this month. A stronger hashrate means greater involvement of the mining community, likely fueled by expectations of higher profits as the privacy token gains traction in the coming weeks.

Furthermore, investor appeal for the token increased after the Zcash Open Development Lab managed to raise millions from key backers such as Paradigm and a16z. This influx of capital is calming investor doubts that emerged earlier this year after a core part of the development team staged a mass resignation, which had briefly cast a shadow over the future of the project.