Key Insights
- •ZCASH (ZEC) price goes on a 5-day bullish streak as the overall crypto market faces a bearish weekend.
- •ZCASH becomes one of the few cryptocurrencies sucking up liquidity as altcoin dominance pushes higher.
- •Cardano founder Charles Hoskinson reacts to the Winklevoss twins’ involvement with ZCASH.
Zcash Price Performance and Market Context
Zcash price initially kicked off last week on a bearish leg. However, a mid-week bullish resurgence occurred, reignited by the Winklevoss twins and their commitment to supporting the privacy coin.
Zcash price pushed as high as $740 on Sunday after achieving five consecutive daily green candles. A 13% uptick from its weekly low, which confirmed that demand remained strong.
The cryptocurrency pulled back slightly and had a $674 price tag at press time. This indicates a cooling bullish momentum for the asset.
The Relative Strength Index (RSI) for Zcash (ZEC) signaled that its rally last week was not as overbought compared to its rally in the first week of November.
Nevertheless, the fact that it managed to overcome the overall market downtrend confirmed its robust appeal in the market.
Although the privacy coin delivered an impressive upside, it was overbought, and this could lead to yet another selloff in the coming days.
Can Zcash (ZEC) Price Maintain the Rally?
Bitcoin dominance has been retreating for almost 2 weeks now. As a result, altcoins were supposed to be receiving more attention, but most top altcoins were also in the red.
Zcash price was one of the few exceptions, and its performance revealed that it has been soaking up liquidity. Granted, the privacy coin maintained an aggressive upward trend in terms of dominance, too.
For reference, Zcash dominance jumped from as low as 0.031 at the start of October but has since pushed as high as 0.35%. This represents a more than 1,000% dominance surge in about 6 weeks.
The dominance spike confirmed that the ZEC price was the biggest beneficiary of the declining Bitcoin dominance.
On the other hand, its ability to escape the gravitational pull of the recent bearish activity may point towards outflows once the rest of the altcoins start recovering.
In other words, Zcash holders may be incentivized to secure profits, especially if the rest of the altcoins start to recover. Investors may want to take advantage of the recently discounted price, hence the appeal in channeling profits elsewhere.
Is Cardano Founder Charles Hoskinson Interested in Zcash?
News of the Winklevoss twins’ involvement in Zcash attracted a lot of attention, including from Charles Hoskinson.
The Cardano founder found the move interesting, and this has raised speculation on how he could potentially steer Cardano in regard to the privacy segment.
For context, the Winklevoss twins announced plans to create a Zcash treasury with a $50 million initial investment. They revealed plans to build up the treasury to at least 5% of the privacy coin’s total supply.
Hoskinson’s reaction may have been fueled by the realization that the privacy coin segment was starting to gather attention. Moreover, such heavy investment highlighted a trend that could potentially proliferate into a much bigger movement.
Meanwhile, Hoskinson previously expressed interest in creating a Bitcoin treasury. His reaction to news of the Winklevoss twins’ investment in Zcash triggered speculation that Cardano might also create a Zcash treasury.
However, no such announcement has been made so far.
Conclusion on Zcash's Market Position
In conclusion, Zcash price action has been quite interesting in the last few weeks, and it has shown robust appeal in privacy coins.
It will be interesting to see how things unfold in this segment, given its highly sensitive nature.
Governments have previously expressed disdain over privacy coins. However, the mood around cryptocurrencies has been changing with governments embracing them, but the big question now is whether privacy coins like Zcash will receive the same courtesy.