The cyberattack that shut down the colonial pipeline put pressure on privacy tokens. Zcash price lost 30% from its peak before rebounding.
Privacy tokens may be on the verge of serious scrutiny after a series of high-profile hacks. A hacker gang targeting Taiwanese computer giant Acer had demanded a $ 50 million ransom from Monero.
Last week, a ransomware cyberattack on the colonial pipeline forced the operator to shut down critical infrastructure. This resulted in a 45% disruption of the energy supply to the East Coast.
The FBI suspects that Eastern European hacker group DarkSide is behind the attack.
The price of Zcash has been extremely volatile after the report and this may continue for some time.
Transactions using Zcash are completely anonymous, leaving no trace of the identity of its users.
Decentralized cryptocurrency uses “zk-Snark” technology. In a nutshell, this means that transactions are verified without revealing any sensitive information.
The Zcash price saw a resurgence in 2021, with privacy coins attracting renewed interest from investors. This saw the coin increase its market cap to a high of $ 3.6 billion based on current price and ranking as the 49th largest crypto asset by valuation.
Zcash Price Outlook
At $ 371 today, Zcash’s price had gained 590% in 2021. Following the spike, a strong sell-off saw the price drop to $ 253 before returning to its current £ 309.
Although 16% lower than highs, the coin is still + 482% so far this year.
Volatility is nothing new to Zcash investors, and previous declines have been bought off. Including a 45% drop in the crypto market collapse in April.
The price remains above its major moving averages and therefore remains in an uptrend. Investors should be cautious nonetheless, as failure to maintain the $ 280 mark could take Zcash’s price back to the April 28 high of $ 240.
Despite trading above the $ 320 level in 6 of the last 7 days, the price did not close above.
A close above $ 320 should indicate that the price has recovered and would make yesterday’s $ 371 high the target.
Zcash Daily Chart
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