Zcash price has rallied over 1,500% this year as privacy-focused cryptocurrencies gained increased attention from investors. Now, it is close to confirming an inverse head and shoulders pattern that could trigger a breakout in the upcoming trading sessions.
Summary
- Zcash price is up 175% in the past month.
- Backing from heavyweights such as Arthur Hayes and the Winklevoss twins has improved investor sentiment.
- An inverse head and shoulders pattern has formed on the 4-hour chart.
According to data from crypto.news, Zcash (ZEC) has rallied over 30% in the past 7 days and 175% over the past month. Trading at $691.5 last check Thursday, Nov. 20, the privacy-focused token is up nearly 1,625% from its levels seen in early September.
A slew of reasons has contributed to Zcash’s recent rally, with the most notable being the involvement of prominent crypto personalities, including Tyler and Cameron Winklevoss, who have set up a dedicated digital asset treasury focused on accumulating ZEC through the newly rebranded Cypherpunk Technologies.
Per the latest announcement, Cypherpunk has accumulated 233,644 ZEC, currently worth roughly $150 million, following its latest purchase of nearly 30,000 tokens at an average price of $602.6. Its total ZEC holdings now represent around 1.25% of the circulating supply, and the company has stated plans to rapidly expand this position until it holds at least 5% of the total ZEC supply.
Such aggressive accumulation from a well-known institutional player could strengthen investor conviction in Zcash’s long-term potential and play a significant role in supporting its price over time.
Arthur Hayes, formerly the chief executive of Bitmex and a long-time advocate for privacy-focused cryptocurrencies, has also thrown his weight behind Zcash. The analyst’s prediction that Zcash could reach $1,000 in the short term, along with the recent transfer of millions worth of ETH and various ecosystem tokens from his wallet to institutional trading platforms, has sparked renewed speculation that he may be preparing to accumulate more ZEC.
This development triggered a fresh wave of investor attention toward the token, especially at a time when interest in privacy continues to grow across the crypto space. Peers like Decred (DCR), Dash (DASH), and Monero (XMR) have also rallied by 90%, 80%, and 22% respectively, in the past month.
Furthermore, nearly 30% of the total ZEC supply is now stored in shielded pools, data from the Zcash dashboard shows. An increasing amount of shielded ZEC suggests that more users are actively utilizing its privacy features. It also reduces the volume of tokens available in active circulation, thereby easing selling pressure and contributing to a more stable price environment for the long run.
On the 4-hour chart, Zcash price has formed an inverse head and shoulders pattern, which typically signals a bullish reversal after days of downward pressure. The head of the pattern lies at $425, with the left shoulder at $485 and the right one at $545.
Zcash price is eyeing a breakout from a bullish reversal pattern on the 4-hour chart — Nov. 20 | Source: crypto.newsAt press time, the price appears close to confirming a breakout from the neckline of the pattern at $690. A decisive move above this level could open the door for a rally toward $956, nearly 40% above the current price level.
Other indicators seem to support the possibility of such an upside move. Notably, ZEC price has climbed above the 50-day exponential moving average at $613, a sign that momentum is shifting in favor of the bulls. Additionally, the Supertrend indicator flashed green as it flipped below the price level, often considered a buy signal by traders.
However, investors should note that the bullish setup largely depends on whether Zcash price can sustain above the 50-day EMA in the short term. A breakdown below this level could invalidate the pattern and expose the token to renewed selling pressure.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
Source: https://crypto.news/zcash-price-eyes-breakout-from-inverse-hs-targets-40-upside/
