Zcash Price May Surge as Technical Patterns and Rising Demand Signal Bullish Outlook

Key Insights

• Zcash price has formed a cup-and-handle pattern, pointing to more gains in the near term.
• ZEC’s demand continues rising as evidenced by the soaring shielded addresses.
• The token will benefit from the rising demand in the spot and futures market.

Zcash price remained resilient this week despite broader crypto market weakness. ZEC traded near $555 after rebounding sharply from its yearly low near $184, while traders continued monitoring bullish technical setups and rising privacy-focused demand.

Technicals suggest that the ZEC price has formed some bullish patterns, which may lead to more gains in the near term. First, the coin has formed a bullish flag pattern, which happens after an asset goes parabolic and then forms a descending channel.

Second, this channel is part of the cup-and-handle pattern, a common continuation sign in technical analysis. This cup has a depth of about 67%. Measuring the same distance from its upper side gives you a target of $947. A move above that price will raise the possibility that it will jump to the psychological level of $1,000.

Third, the Zcash price has formed a golden cross pattern. This pattern happens when the 50-day and 200-day moving averages cross each other and are pointing upwards. It often leads to more gains in the coming days or weeks.

Other indicators point to more gains. For example, it remains above the Supertrend indicator, a sign that bulls remain in control.

The other main bullish catalyst for the ZEC token is that demand continues to rise. This growth is thriving amid the rising demand for privacy tokens.

For starters, Zcash is similar to Bitcoin, with the only difference being that it allows users to select whether they want their transactions are public or private. In this case, the number of shielded supply has jumped to a record high of 5.15 million tokens, up from 3 million 12 months ago.

There is a likelihood that demand for these tokens will continue rising in the coming years as demand for privacy continues to rise this year.

Meanwhile, the Winklevoss Twins, who are famous for receiving millions of dollars from Facebook and being some of the earliest Bitcoin investors, have started to buy the token.

According to the WSJ, Taylor and Cameron Winklevoss have been in a buying spree and now hold Zcash tokens worth over $180 million. This makes them some to the biggest holders of the tokens, a sign that they expect it to keep rising.

At the same time, they have invested $50 million in Cypherpunk, a company that is emulating Michael Saylor’s Strategy and Tom Lee’s BitMine.

Cypherpunk has accumulated 314,185 coins worth over $174 million. The average purchase price was $337, indicating it is currently in profit and has an mNAV of 1.33.

The company, which has no debt, plans to continue its buying spree this year, a move that will drive long-term demand.

This demand may continue rising after the Securities and Exchange Commission (SEC) approves the spot Grayscale Zcash ETF, later this year.

Meanwhile, there are signs that demand for the Zcash token is rising in the futures and spot markets, and is continuing to rise this year.

For example, data shows that Zcash’s futures open interest has jumped to $1.22 billion today, its highest point since May 11. Its open interest is one of the highest in the crypto industry.

Similarly, the coin had a 24-hour futures volume of $3.25 billion, while its spot market volume rose to over $263 million. These metrics mean that demand remains elevated despite the ongoing weakness in the crypto market.

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