ZEC ‘Bubble’ Bigger Than 2021, CryptoQuant Data Shows
Zcash (ZEC) is exhibiting indicators of getting into an excessive bubble part, based on a current on-chain evaluation. Current buying and selling metrics exceed these recorded throughout its 2021 bull run peak.
On Tuesday, Ki Young Ju, CEO of on-chain information platform CryptoQuant, posted the sobering evaluation on his X account. In doing so, he warned retail traders concerning the dangers. He bluntly said, “Sorry, however you’re retail if you happen to’re shopping for Zcash now.”
CryptoQuant CEO Issues Stark Warning
The CEO shared a chart titled ‘Zcash: Spot Volume Bubble Map’ which tracks ZEC’s buying and selling quantity in opposition to its value since January 2020. In 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).
The chart’s core interpretation depends on recognizing a Distribution Phase. This part is late in a bull cycle when buying and selling quantity is exceptionally high, however value appreciation is sluggish. This signifies that new traders are getting into the market, main to an enormous turnover, or “handover,” of tokens from seasoned holders.
The chart reveals a pointy interval of high turnover that lasted about six months through the first half of 2021, when ZEC surged towards $300 per coin. This part finally preceded a market-wide downcycle, which led to a value collapse and main losses for traders who purchased ZEC on the finish of the rally.
Current Metrics Surpass 2021 Peak
The most alarming discovering is that the newest ZEC buying and selling quantity and value motion register a bigger bubble dimension than the one seen within the first half of 2021. If the broader cryptocurrency market is certainly within the remaining stage of its cycle, the analyst warns {that a} repeat of the 2021 collapse is very attainable.
ZEC has attracted huge consideration not too long ago, soaring by over 750% within the final three months. The cryptocurrency’s seemingly inexplicable rally has spurred value will increase throughout the complete privacy coin sector.
High-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 high as $10,000 per coin. At the time of this report on Tuesday, ZEC is buying and selling round $328, up from $308 when Hayes made his prediction.
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