ZCash Bounces Back to $400, But Short-Term Outlook Remains Uncertain

The cryptocurrency market has started July off on a positive note, with many altcoins experiencing a resurgence in value. Bitcoin has gained 6.26% from its low of $57,800 made on July 1, and the altcoin market cap has expanded by 4.05%. However, despite this initial bounce, analyst Axel Adler Jr. warns that the recovery may be short-lived.

A lack of growth in Bitcoin Open Interest (OI) suggests a lack of fuel to sustain the upward move. The OI fell by 23k BTC, while net taker buy volume was $68 million. This indicates that buyers are not committing to long positions, which could negatively impact altcoins like ZCash.

ZCash has indeed experienced a 5.28% increase in value over the past 24 hours, but its OI has grown by only 1.33%. This suggests a lack of speculative interest and raises concerns about the sustainability of the current uptrend.