The Zcash (ZEC) price has risen above the psychological level of $500, providing a bullish outlook for the privacy-focused token. This comes amid a notable rise in whale accumulation and derivatives activity among crypto traders.
Why the price of Zcash (ZEC) rose above $500 despite the crypto market decline
CoinMarketCap data show that the Zcash (ZEC) price has once again risen above $500, up more than 20% in the past week. This comes despite the downward trend in the crypto marketwith Bitcoin trading within a tight range just below the psychological level of $90,000. The ZEC spike above $500 comes amid a significant increase in whale accumulation, which has contributed to this price increase.
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Nansen data show a 47% increase in ZEC whale ownership, with the top 100 addresses now holding 66% of the token’s total supply. This has likely caused a supply shock, causing the price of Zcash (ZEC) to rise. In particular, there has been a decline of 55.36% in the supply held by stock exchangesfurther highlighting the accumulation trend, with investors likely to move their coins off exchanges in order to hold them for the long term.
On-chain analytics platform Lookonchain also highlighted the accumulation trend among these whales. In one X messageLookchain unveiled two newly created wallets that raised 26,241 ZEC ($13.5 million) from Binance. In another messagethe on-chain analytics platform revealed that another whale had extracted 7,714 ZEC ($4.12 million) from Kraken. Lookonchain had also signed attention to a whale that took 30,000 ZEC ($13.25 million) from Binance last week.
Derivatives market activity has also contributed to Zcash’s (ZEC) price surge above $500. CoinGlass data show an increase in open interest of the altcoin, indicating traders are increasing their positions. Most of these traders are currently long, with a long/short ratio above 1.
This recovery is positive the privacy tokenwhich had fallen to $310 earlier this month. Notably, ZEC is the best performing crypto among the top tokens with a year-to-date (YTD) gain of around 800%.
‘Next stop is $1,000’
BitMEX co-founder Arthur Hayes stated in a X message that the next stop for Zcash (ZEC) price is $1,000, after a recovery above $500. This represents a potential gain of 100% from the current price level. The BitMEX co-founder was optimistic has been on the privacy token for a while, predicting that it could eventually reach $10,000.
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Meanwhile, co-founder of Zcash suggested Eli Ben-Sasson that the price of Zcash (ZEC) will continue to rise due to the good product, scarcity and regulatory environment. He noted that privacy is now widely recognized as necessary in crypto. As such, the privacy story is expected to continue to fuel this price increase.
At the time of writing, the Zcash (ZEC) price is trading around $536, up more than 3% in the past 24 hours, according to facts from CoinMarketCap.
Featured image from Freepik, chart from Tradingview.com