Here’s Why The ZCash (ZEC) Price Rallied Above $500 Again
The Zcash (ZEC) price has rallied above the psychological $500 level, providing a bullish outlook for the privacy-focused token. This comes amid a notable surge in whale accumulation and derivatives activity among crypto traders.
Why Zcash (ZEC) Price Rallied Above $500 Despite Crypto Market Decline
CoinMarketCap data show that the Zcash (ZEC) price has rallied above $500 again, up over 20% in the last week. This comes despite the crypto market downtrend, with Bitcoin trading in a tight range just below the psychological $90,000 level. The ZEC surge above $500 comes amid a significant increase in whale accumulation, which has contributed to this price surge.
Nansen data show a 47% increase in ZEC whale holdings, with the top 100 addresses now holding 66% of the token’s total supply. This has likely created a supply shock, sparking a rise in the Zcash (ZEC) price. Notably, there has been a 55.36% drop in the supply held by exchanges, further highlighting the accumulation trend, with investors likely moving their coins off-exchanges for long-term holding.
On-chain analytics platform Lookonchain also highlighted the accumulation trend among these whales. In an X post, Lookchain revealed two newly created wallets that withdrew 26,241 ZEC ($13.5 million) from Binance. In another post, the on-chain analytics platform revealed that another whale withdrew 7,714 ZEC ($4.12 million) from Kraken. Lookonchain had also drawn attention to a whale that withdrew 30,000 ZEC ($13.25 million) from Binance last week.
Activity in the derivatives market has also contributed to the Zcash (ZEC) price rally above $500. CoinGlass data show an increase in the altcoin’s open interest, indicating that traders are increasing their positions. Most of these traders are currently long with the long/short ratio above 1.
This recovery marks a positive for the privacy token, which had dropped to as low as $310 earlier this month. ZEC is notably the best-performing crypto among the top tokens with a year-to-date (YTD) gain of around 800%.
‘Next Stop Is $1,000’
BitMEX co-founder Arthur Hayes declared in an BitMEX co-founder has been bullish on the privacy token for some time now, predicting it could eventually reach $10,000.
Meanwhile, Zcash’s co-founder privacy narrative is expected to keep fueling this price surge.
At the time of writing, the Zcash (ZEC) price is trading at around $536, up over 3% in the last 24 hours, according to data from CoinMarketCap.
