Zcash price continued its strong rally, reaching its highest point since May 2021, making it one of the best-performing tokens in the crypto market. ZEC token jumped to a high of $338, up by over 1,920% from its lowest level this year.
Zcash Price Jumps as Key Fund Crosses $100M
ZEC price has been in a strong uptrend in the past two months, making it the second-biggest privacy-focused tokens in the crypto industry after Monero.
The token jumped after Grayscale revealed its plans to launch the first fund. This fund, which is available to accredited investors, has already attracted over $102 million in assets despite its 2.50% in fees.
This is a sign that there is strong demand for the coin. Most importantly, it raises te possibility that the company will file to convert it into an ETF, opening it to more investors.
Zcash price has also done well because of the rising demand from investors as evidenced by the rising volume in the spot and futures market.
Data compiled by CoinGlass shows that its futures open interest has jumped to over $334 million, its highest level since October 12. This is notable because, before the Grayscale news, the token’s interest stood at less than $20 million.
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Zcash’s volume in the futures market has also done well in the past few days. Its daily volume on Sunday was over $713 million. While this was lower than the year-to-date high of $3.25 billion, it remains higher than where it was before the Grayscale news.
More data shows that people are using the network for payments. Data compiled by Zechub shows that the number of shielded transactions has jumped to the highest point in months.
For starters, Zcash uses a dual method when handling transactions. The first one is the transparent approach, where all transactions are publicly available, while the shielded ones are not available in a public ledger.
ZEC price has also jumped ahead of the November 18 halving, where the block rewards are slashed by half.
ZEC Price Technical Analysis
The weekly timeframe chart shows that the ZEC price has rebounded in the past few months. This surge happened as the token moved from the accumulation to the markup phase of the Wyckoff Theory. It is now in that markup phase, which is characterized by high demand from investors.
The coin has moved above the 50-week and 100-week Exponential Moving Averages (EMA). Therefore, the most likely scenario is where it continues rising as bulls target the all-time high of $384 and then resumes the downtrend.
The retreat will happen as it moves to a mean reversion, where it drops to the historical averages. Also, the token remains in an extremely overbought level, with the Relative Strength Index (RSI) being at 88.
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