Zcash price continued its strong bull run, hitting its highest level in years. ZEC token soared to a high of $1,620, up by 2,800% in the last 12 months. This surge has brought its market capitalization to $27.2 billion, making it the 9th biggest coin in the world, having passed other tokens like Dogecoin, Hyperliquid, Chainlink, and Cardano.
Zcash price is soaring as ZEC ETF inflows jump
One of the main reasons behind the ongoing Zcash price surge is the ongoing demand for ZEC ETFs. Data shows that the Grayscale Zcash ETF added over $32.8 million in assets on Tuesday, bringing this week’s increase to $35 million.
The fund, which has a 2.5% expense ratio, has added $284 million in inflows this month after adding $21 million last month. The fund now holds $979 million in assets, higher than other altcoin ETFs.
ZEC ETF inflows | Source: SoSoValue
Zcash’s demand may continue rising now that 21Shares has launched Europe’s first ETF on Euronext. This fund will give retail and institutional investors an opportunity to invest in the coin.
ZEC shielded supply is rising
Zcash price is in a strong rally because of the rising organic demand. Data compiled by Blockworks shows that the number of shielded tokens rose to 4.91 million, its highest level since May 25. It has been in a strong upward trend after bottoming at 4.38 million in June this year.
The rising shielded supply is a sign that that demand for the token continues to grow as users rotate to privacy tokens.
For starters, Zcash is the biggest privacy token in the world. It uses a technology called zk-SNARKs (Zero-Knowledge Succinct Non-Interactive Argument of Knowledge). This technology lets one party prove to another that a statement is true without revealing any of the underlying information.
Users interacting with Zcash can decide to send transactions in a public ledger. In this case, all transaction details, including the sender, recipient, and amount are displayed. Users on the shielded side opt to hide their details.
Zcash price has also continued rising this year as the Fear of Missing Out (FOMO) accelerated. FOMO is the practice of buying an asset since the price is rising. In this case, the daily volume has jumped to over $2 billion, while the futures open interest has spiked.
ZEC price prediction: technical analysis
Zcash price chart | Source: TradingView
The daily chart shows that Zcash price has been in a strong uptrend in the past 12 months. It recently crossed the important resistance level of $1,288, its highest level on September 9.
Zcash has remained above all moving averages, which is a bullish sign. The risk, however, is that the coin is flashing a bearish divergence pattern. The Relative Strength Index (RSI) has slipped from 88 to the current 72.
Also, the Percentage Price Oscillator (PPO) has formed a bearish divergence. Therefore, the token may retreat and retest the support of $1,288, and then rebound towards $2,000.
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