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 over the past two months, making it the second-largest privacy-focused token in the crypto industry behind Monero.
The token jumped after Grayscale revealed its plans to launch the first fund. This fund, available to accredited investors, has already attracted over $102 million in assets despite its 2.50% fee.
This is a sign of strong demand for the coin. Most importantly, it raises the possibility that the company will file to convert it into an ETF, opening it to more investors.
Zcash price has also risen due to increased investor demand, as evidenced by higher volume in the spot and futures markets.
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 futures volume has also risen over 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 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 reached its highest level 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 the markup phase, characterized by high investor demand.
The coin has moved above the 50-week and 100-week Exponential Moving Averages (EMA). Therefore, the most likely scenario is that it continues rising as bulls target the all-time high of $384, then resumes the downtrend.
The retreat will occur as it moves toward mean reversion, dropping back to historical averages. Also, the token remains extremely overbought, with the Relative Strength Index (RSI) at 88.
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