[updated March 8th, 2019] ZCash (ZEC) is a pre-eminent privacy and security coin. It’s seen ZEC price tumble from highs near $900 to a price that’s currently just over $100. There’s not a whole lot of optimism in the price going upward at the moment with one important and vital exception: a listing on Coinbase. We’ll explore what that could do to Zcash price and where it could land by the end of the year.
Technical analysis and other indicators are not especially useful with the read on a singular event like a coin listing. But we’ll discuss what we’ve seen from Coinbase listings before and we also saw that ZEC hit a 20% bump from a Gemini listing earlier this year. If we can predict a similar 20% jump in USD price on a Coinbase listing, and the same on BTC, assuming BTC stays flat-ish at the time of the event, we could see ZEC jump to near $130 and beyond. If it grows in ratio it will go beyond that with a BTC recovery timeline.
However, this can’t all be assumed. Bittrex, another leading exchange, added ZEC/USD pairings just last month and it saw a 10% drop in ZCash price the same day. Apparently, some wanted to cash out to fiat instead of BTC.
Built On Science
First, though, the story of ZEC starts years ago with technologists interested in creating a coin that could use zero-knowledge proofs; an ability that would hide transaction details that other coins were exposing. The technology was seen as innovative then as it is now and it’s been praised by many in the crypto world for its ability to complete privatize a transaction. Few coins can do this, and at the time it was a coin that wasn’t just copying Bitcoin but innovating on the idea Satoshi first laid out.
As its own website says, Zcash is built on science. And that’s good—it’s a project still and completely devoted to the mission it set out to achieve. Again, not every project can say this.
But it also means it’s not a project overly concerned with its own trading price, nor doing a high level of marketing toward getting user adoption or exchange listing. So it has a downside there, especially for early investors.
Instead, the brand focuses hard on the elements and fundamentals of privacy. You can see that on its blog—which is filled more with perspective pieces than marketing fodder or investor relation pieces. And that’s just the way Zcash is going to be. As it’s latest post states, the project is focused on its experiment “to shake financial foundations and build a future that honors all people, for all time.”
Not every coin is going to be TRON and have Justin Sun tweeting about new updates daily to attract new eyes to the project.
But if Zcash can succeed in its vision, and provide a coin that is exchanged with this praised technology, exchanges that cannot be tracked, then ZEC price has a whole lot of value to back it up.
The Coinbase Listing Effect on ZCash Price
And that’s clearly what Coinbase saw as it announced in July that it was looking at ZEC, amongst only four other coins, to list on its platform. It gave no timeline, but just the news that the United States’ biggest exchange was thinking of adding a ZEC-fiat rampway saw its price jump 40%.
And just now we’re seeing the Coinbase effect in full swing. One of the other coins listed in that group of five was 0x (ZRX) which was added to Coinbase Pro today. The coin saw a 20% increase on its USD value and more on its BTC ratio as other coins fell. The same will likely happen when Zcash is listed on Coinbase and ZEC price will see a boost from new consumer interest.
Seeing that Zcash is focused on increasing its technical experiment and partnering with scientific teams that can work with its zk-SNARKs technology, Zcash price is going to rely on Coinbase.
Technical Analysis on ZCash Price
Our first chart aims to show just what the effect from Coinbase could be. It also acknowledges that ZEC/BTC has now hit its all-time low in ratio trading. That’s important, as ZCash price has crashed down, BTC has maintained some level and the Satoshi ratio for ZEC price has potentially bottomed out. Since Coinbase would list ZEC on its own (it already lists BTC) the movement would work most on this ratio.
Another analyst shows a series of indicators showing positive room for ZEC price to go up from here. The analyst is looking at Stoch RSI and MACD and seeing positive LONG indicators for both. Here’s that chart.
Where ZEC goes remains to be seen. The silver lining for investors is that ZCash has been given serious legitimacy in the space via Gemini and Bittrex fiat listings. The Coinbase listing, when it shall come, will do the same. It may take some time for price to recover, but ZCash is at least a project to watch for years to come.