Zcash is a cryptocurrency that aims to provide more privacy to its users compared to other currencies like Bitcoin.
The ZEC price spiked after Electric Coin Company announced plans to migrate to a PoS consensus algorithm.
Zooko Wilcox-O'Hearn, founder of the Electronic Coin Company (ECC), cryptocurrency advocate, computer security expert and entrepreneur, wrote in his blog post;
- He highlighted the need for miners to reduce the downward price pressure on the ZEC and increase the utility of the token.
- He argued that PoS would make Zcash “More decentralized, hack and hijack resistant and equitable”, strengthen security and improve performance.
Meanwhile, the transition to PoS may take 3 years. While the community welcomed this news as well, after the announcement on November 19, the price of ZEC appreciated by more than 80%, registering its ATH of $ 265 on November 25.
According to Tom DeMark Sequential signals, ZEC may need a fix before going further. An increase in selling pressure around current price levels could help confirm a bearish formation, which could lead to a pullback to the $227 support before the uptrend resumes.
The main advantage of the Zcash currency lies in its anonymity, which offers an unattainable level of privacy, unlike cryptocurrencies such as Bitcoin or Ethereum.