Zcash has suddenly become one of the biggest stories in crypto.
ZEC briefly moved above $1000 before pulling back toward the $980 area. The move pushed Zcash into the top ten crypto assets by market value.
Its market value reached around $16.5 billion.
The trading activity is also hard to ignore.
ZEC trading volume jumped by 173% and reached around $1.62 billion in 24 hours.
That is a huge amount of activity for a coin that was trading below $500 back in August.
Since then the move has been almost nonstop.
ZEC moved above $800 and then pushed toward the $1000 level. The broader crypto market has also improved during this period which has helped create better conditions for buyers.
But crossing $1000 is one thing.
Holding above $1000 is another.
ZEC reached around $1027.80 before falling back below the milestone.
That quick rejection tells me some holders were ready to take profits once the psychological $1000 level was reached.
This is not automatically a bad sign.
After such a strong move it is normal for early buyers to take some money off the table.
The bigger question is whether new buyers are strong enough to absorb that selling.
The current momentum reading is around 78.33 which shows how strong the recent buying has been.
But it also tells us that the move has become stretched in a short period.
When a coin moves this quickly the risk of sharp pullbacks also increases.
For me there are two levels that matter now.
The first is $1000.
If ZEC can reclaim $1000 and then break above the recent high around $1028 with strong volume then the bullish move could continue.
But if buyers fail to reclaim the level then I would watch $900.
That area could become the first serious test of whether buyers are willing to step back in after the recent rally.
The most important thing here is not the number $1000 itself.
It is how ZEC behaves after reaching it.
A strong coin should eventually turn an old resistance level into support.
If ZEC can do that then this move could have more room.
If it keeps getting rejected around $1000 then the market may need more time to cool down.
Right now ZEC has strong momentum and huge trading activity.
But after a move this fast I would rather watch the pullback than chase the green candles.
The next reaction around $1000 and $900 could tell us much more than the move above $1000 itself.