Zcash (ZEC) price has experienced a remarkable surge, with its price climbing over 45% in the past 24 hours. The privacy-focused cryptocurrency has significantly outperformed the broader market, standing strong at over $600. This increase is an upswing extension of a pattern with a 20% increase in an otherwise downward market.
The increase in the value of Zcash is against the backdrop of a wider cryptocurrency selloff, spearheaded by Bitcoin price crash.
Nevertheless, ZEC has been trading above the major support points, which is a good sign of the bullish movement. With the fear of the cryptocurrency market experiencing another fall, the price of Zcash has revealed its strength, which is contrary to the overall tendency in the market.
What’s Driving Zcash Price Surge?
A major factor behind the recent surge in Zcash price is growing institutional demand. The Winklevoss twins supported Cypherpunk Technologies, which caused a splash by purchasing 203,775 ZEC about $50 million.
This acquisition now sees Cypherpunk possess approximately 1.25% of the total supply of ZECs, and intends to ultimately have 5% in control. This has been compared to the long-term Bitcoin strategy of MicroStrategy, indicating that the price of Zcash is already being institutional and used as a privacy reserve asset.
The Grayscale Zcash Trust reflects the growing interest of institutional investors whose assets under management (AUM) has recently hit 200 million. These massive purchases assist in minimizing the supply in circulation, whereby they provide extra price support to ZEC.
Zcash Price and Growing Privacy Demand
The Winklevoss twins supported Cypherpunk Technologies, which caused some splash by purchasing 203,775 ZEC about 50 million dollars.
This acquisition now sees Cypherpunk possess approximately 1.25% of the total supply of ZECs, and intends to ultimately have 5% in control. This has been compared to the long-term Bitcoin strategy of MicroStrategy, indicating that Zcash is already being institutional and used as a privacy reserve asset.
The Grayscale Zcash Trust reflects the growing interest of institutional investors whose assets under management (AUM) has recently hit 200 million. These massive purchases assist in minimizing the supply in circulation, whereby they provide extra price support to ZEC.
ZEC Price Analysis: Is Rally Sustainable or Heading for a Correction?
At the time of writing, the price of ZEC surged by 45%, marking a significant upward momentum.
The cryptocurrency experienced a strong surge, going beyond important levels of resistance to attain a new high point. The current price of ZEC is around $638, and the expected resistance is $700, and the support levels are at $620 and $500.
The MACD(Moving average convergence divergence) has a positive crossover, and the MACD line is far ahead of the signal line.
This implies that the market is on an upward trend, making it possible that it will continue rising in the near future. The histogram is also bearish, and this enhances the bullish mood. The Relative Strength Index (RSI) stands at 62.01, indicating that ZEC is on the verge of becoming overbought.
If ZEC manages to break through the $700 resistance level, the next target will be near $750. However, if a retracement occurs, support at $620 and $500 will be key levels to watch.
Source: https://coingape.com/markets/zcash-price-soars-45-heres-why/