Zcash price rebounded back above $500 after gaining a major new catalyst, following a drop of over 40% from its 7-year high of $735 reached earlier last weekend.
Summary
- Zcash price rallied over 20% on Thursday.
- The Winklevoss twin-backed Cypherpunk Technologies has launched a digital asset treasury dedicated to accumulating Zcash.
- Zcash has formed a descending channel pattern on the 4-hour chart.
According to data from crypto.news, privacy-focused cryptocurrency Zcash (ZEC) rose 21% moving past the $500 threshold to an intraday high of $543.68 before settling at $515 at press time. At its current price, the altcoin’s market cap stood at $8.4 billion with a circulating supply of approximately 16.38 million tokens.
Investor demand for ZEC sharply spiked after news broke that the Winklevoss twins, Tyler Winklevoss and Cameron Winklevoss, had set up a digital asset treasury focused on accumulating ZEC through the newly rebranded Cypherpunk Technologies, formerly Nasdaq-listed Cambridge biotechnology firm Leap Therapeutics.
Through a Nov. 12 X post, Tyler Winklevoss shared that Cypherpunk had already acquired 203,775 ZEC at an average price of approximately $245 per coin. It did this through a $58.88 million private placement led by Winklevoss Capital. The said holding represented around 1.25% of the circulating ZEC supply at the time of announcement, and the company stated plans to rapidly scale this position until it holds at least 5% of the total ZEC supply.
As Cypherpunk continues to accumulate ZEC at an aggressive pace, following the playbook-style strategy used by Michael Saylor’s Strategy for Bitcoin, it could strengthen investor conviction in Zcash’s long-term potential and play a key role in sustaining its price over time.
Investors should note that this is not the first time Zcash has benefited from an industry heavyweight throwing their support behind the asset.
Arthur Hayes, formerly the chief executive of Bitmex and a long-standing advocate for privacy-focused cryptocurrencies, had previously predicted that Zcash would climb to $1,000. His public endorsement sparked a sharp wave of enthusiasm across the market, helping the token surge from the $500 range to its monthly peak above $700 last week within a single day.
In an announcement on X on Nov. 12, Hayes also advised his followers to withdraw their ZEC holdings from centralized exchanges or risk losing key privacy protections that define the asset’s core value.
“If you hold $ZEC on a CEX, withdraw it to a self-custodial wallet and shield it,” Hayes wrote on X.
As of press time, nearly 29% of the total ZEC supply, or around 4.76 million tokens, is now stored in shielded pools, marking a nearly 55% increase over the past month, according to data from the Zcash dashboard.
A higher shielded amount indicates that more users are actively utilizing Zcash’s privacy features, which in turn suggests growing confidence in its use case as a privacy-preserving currency. It also removes a significant portion of supply from active circulation, further reducing potential sell pressure and helping stabilize price in the long run.
Zcash price analysis
Since Nov. 6, Zcash has entered into a descending parallel channel pattern on the four-hour chart, which is typically considered a bearish continuation formation in technical analysis. However, the pattern can flip bullish when an asset breaks out from its upper boundary with strong volume behind the move.
As of now, for Zcash to break out from the pattern, it must run to $600, a level which aligns with both the next psychological resistance barrier and the 78.6% Fibonacci retracement, making it a key technical zone to watch. A decisive breakout beyond it could instill bulls to push for a retest of $700 and potentially extend the rally higher.
Momentum indicators also appear to favor the bullish case at the time of writing. The MACD line is approaching a bullish crossover with the signal line, while the Relative Strength Index has rebounded back to neutral levels near 50, a sign that selling pressure may be easing and bears are beginning to lose control.
That said, if broader market sentiment remains muted, as it has since the beginning of this week amid persistent macroeconomic uncertainty, investor confidence could fade once again. In that case, Zcash may continue to drift lower within the descending channel and risk revisiting the $400 level as its next potential support.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
