Privacy coin Zcash (ZEC), which has been in the spotlight in recent months owing to its surge beginning from late September, is down by more than 38% in the past seven days as traders capitalize on heavily overbought conditions.
Zcash fell by a further 5.66% in the past 24 hours to trade at $331 at press time. It is now down by 34.51% over the past seven days as traders begin to take profits after a major rally between September and November.
Zcash’s drop in the last 24 hours comes despite a broader market rally, which saw a handful of altcoins post significant gains, prompting the attention of the market.
Amid the drop, Grayscale founder Barry Silbert, Zcash bull, hints at a major price move coming for Zcash, saying he was “busy making popcorn for a short squeeze.”
Silbert once named Zcash as one privacy coin he was particularly excited about, predicting privacy to become a more popular investing theme.
Zcash massive surge ahead?
Zcash has steadily declined since reaching a high of $739 on Nov. 16, and in the process lost a key support, which held it up when it began rising in September, which is at the daily SMA 50 at $436.
The conversation surrounding Zcash focuses on what comes next for its price, with Grayscale founder Barry Silbert hinting at a massive price surge coming, fueled by a short squeeze.
In response to a tweet made by the Zcash founder, Solana contributor Mert Mumtaz had asked the Grayscale founder to make a bid on ZEC. This was not far-fetched given Silbert’s history with Zcash.
This the Grayscale founder playfully responded to, saying he was “busy making popcorn for the massive short squeeze.”
A short squeeze in the context of the Grayscale founder’s tweet refers to a rapid increase in the price owing primarily to an excess of short selling rather than underlying fundamentals. As short traders expect the price to decline further, a sudden wave of buying pressure “squeezes” them out of the market and triggers a price surge.
Source: https://u.today/grayscale-founder-on-zcash-drop-making-popcorn-for-massive-short-squeeze
