Key Insights:
- Zcash crypto price attains a new ATH at $1,029 after previously consolidating for almost 2 weeks near the previous top.
- ZEC open interest pushes to a new ATH at $2.15 billion.
- Grayscale’s ZEC ETF appears to be the common denominator behind the renewed interest.
Zcash price action is making news headlines after pulling off yet another major price milestone. It is one of the few cryptocurrencies exploring new ATHs, and this time it entered 4-digit price territory.
Zcash price just kicked off the week in celebratory mode after pushing above $1,000 for the first time in history. The privacy coin peaked at $1,029 on Friday, riding renewed bullish momentum in the last 2 days.
ZEC crypto previously demonstrated consolidation after rallying in the second half of August. The privacy coin exchanged hands at $971 at press time after a slight pullback.
ZEC crypto was already deep in overbought territory at press time. This would explain the slight pullback from its new ATH.
Zcash Price: ZEC Short Squeeze At Play
There were multiple drivers behind the historic push of Zcash’s price into 4-digit price tags. One of them could be a short squeeze event. The consolidation observed in late August attracted many short positions.
This was evident in the surge in short liquidations observed since the second half of August. A bear trap led to a spike in liquidations in the last 2 days. ZEC crypto had over $32 million in liquidations in the last 24 hours.
The liquidations suggest that a short squeeze may have aided the privacy coin’s extended rally past $1,000. This was backed by a spike in positive spot net flows of about $23 million observed on 23 September, CoinGlass data showed.
Liquidations are often considered a double-edged sword. Zcash (ZEC) price may also be susceptible to a long liquidation event, which could potentially flip into a sharp sell-off.
The privacy coin’s open interest also surged to new historic levels. It peaked at $2.15 billion on Friday morning, indicating strong demand in the derivatives market.
Aside from the elevated open interest risking a liquidity sweep to the downside, the privacy coin also demonstrated a bearish divergence. Its RSI topped out lower despite the higher high on the price side.
Grayscale’s ZCash ETF Pushes Into a $362 Million AUM
The Zcash price pushed into a new ATH just 10 days after Grayscale launched the privacy coin’s first official ETF in the US. The ETF was listed on the NYSE on August 25.
The listing validated Zcash crypto as a mainstream cryptocurrency and cemented its position as a top 10 crypto by market cap. Grayscale’s ZEC AUM has so far pushed above $362 million.
Beyond the Grayscale Zcash ETF launch, ZEC price action has been benefiting from privacy coin hype. Other coins such as Monero have also been experiencing robust demand tied to the ongoing appeal for privacy coins.
ZEC price could be headed for more upside, and possibly more price discovery. Especially now that the gates of institutional liquidity have opened up.
Polymarket currently predicts a 76% chance that Zcash price could rally to $1,100 and a 50% chance of it reaching $1,300 before 2027. Polymarket has also priced in a 22% chance that ZEC price could surge as high as $1,500.
Zcash crypto currently holds the top privacy coin spot, outpacing Monero on a technicality. Analysts are eager to see whether the privacy coin segment will continue to outperform or lend itself to profit-taking-induced liquidity rotation in Q4.
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