Zcash Eyes Another 40% Price Jump As US Hedge Fund Reveals ‘Significant Position’ In ZEC
Zcash (ZEC) has outperformed the broader crypto market over the past month, rising more than 125% compared to an average 15% gain for most coins.
ZEC/USD 3o day performance chart from TOTAL crypto market. Source: TradingView
The privacy-focused cryptocurrency could rally further in the coming weeks as bullish technical and fundamental indicators converge.
Main Receptors:
US crypto hedge fund Multicoin Capital has revealed that it has been buying ZEC since February. Robinhood lists ZEC as activity on the Zcash network has grown over the past few weeks.
The launch of Multicoin will increase the speed of ZEC
On Tuesday, Multicoin Capital, a US-based crypto hedge fund that manages $2.687 billion in assets, revealed a “large position” in ZEC, fueling speculation that institutional investors are rewarming the privacy-focused digital asset.
Its co-founder Tushar Jain revealed that the company has been stockpiling ZEC since February.
Jain described Zcash as a “very straightforward public market vehicle” for exposure to private, censorship-resistant and hack-resistant money, calling the investment a bet on increasing demand for financial sovereignty and cypherpunk-style privacy tools.
Source: X
ZEC rallied more than 43% in the last 24 hours, indicating that traders interpreted the multicoin announcement as institutional confirmation of the privacy coin narrative.
The departure of the ZEC flag indicates further gains
From a technical perspective, Zcash has entered a breakout phase with a bullish flag pattern emerging on the weekly chart.
A bull flag is formed when the price consolidates in a descending parallel channel after a strong rise. It resolves when the price breaks above the upper trend of the channel and increases with the previous high.
ZEC/USDT Weekly Chart. Source: TradingView
Applying that rule to the ZEC chart puts the divergence target at around $800. Since Wednesday, Zcash has traded as high as $607, leaving a bullish flag to test the weighted target at about 40% above.
Zcash's weekly Relative Strength Index (RSI), a momentum indicator that measures whether the asset is overbought or oversold, suggests that the rally may continue.
The RSI is currently holding below 70, a level traders typically associate with overheated market conditions, indicating that ZEC buyers may still have room to climb before showing signs of fatigue.
BitMEX co-founder Arthur Hayes said Z's target is 10% of Bitcoin's market capitalization, which would imply a multi-trillion dollar value for ZEC and a price that could reach $8,000 to $10,000 per cent based on current supply levels.
Source: X
Robinhod's list, tightening the ZEC supply will increase the tailwind
Zcash's breakout also has basic support.
ZEC rallied alongside the broader crypto market, mirroring patterns seen in early April as the prospect of a US-Iran peace deal improved risk appetite.
The Robin Hood listing on April 23 added another tailwind, opening access to the space to 25.9 million funded users, including those in tight jurisdictions like New York.
Meanwhile, more than 30% of circulating ZEC is now held in blocked addresses, according to data source ZecHub.WIKI. This tightening offer has seen strong interest in private chain transactions over the past year.
Zcash Blocked Supply Weekly Chart. Source: ZecHub.WIKI
