Zcash price skyrockets 20 percent, towards $660, before the Nov. 18 halving, as privacy demand and institutional inflows impose a strong rally effect.
The price of Zcash rose 20 percent to $658 after a 200 percent surge in 30 days in anticipation of the impending halving event on November 18.
This reduction will lower mining rewards to 1.5625 ZEC per block, reducing supply and creating scarcity, as in the Bitcoin system.
Last year, ZEC increased by more than 1,300 percent because of the resurgence in privacy coins and the halving story.
Daily trading volumes fell 29 percent to $2.3 billion, indicating that traders are not trading on a speculative frenzy but holding their positions with confidence following heavy buying earlier in the week.
Actual open interest increased 22 percent to 1.12 billion, and futures trading volume decreased by 24 percent, which points to a calmer market that is set to produce consistent gains.
Uncovering the Halving Scarcity Effect
The next halving means that the supply growth of Zcash can decrease to approximately 3.5 a year, increasing the token’s scarcity.
This usually causes pre-halving positioning, with the traders piling up in case of an upward change in prices.
There have been proposals to set targets of more than $1,000, provided the momentum is continued. Through this, uptake of privacy-oriented transactions is rocketing.
There is now over 30% ZEC supply, or some 5 million coins trapped in shielded pools, an increase of 60 percent over the past month.
They allow fully private transfers with zk-SNARK cryptography, which are getting popular with easy-to-use wallets such as Zashi, helping people make privacy payments.
Technical Strength and Surge of Institutional Surge
The institutional demand for Zcash is on the increase, and the assets of the Zcash Trust managed by Grayscale have increased twofold in the recent past to $151 million.
This is an indication that regulated investors are going back to privacy assets as the world worries about data security.
Technically, the charts of ZEC depict a very strong bullish direction, although there are some overbought results; the major moving averages are significantly under the present values, with the support levels being at the 550 mark and the resistance level at the 700- 720.
Beyond this mark, a breakout may lead to $850 and above in case buying pressure still persists. Zcash has now moved back to the top 20 crypto market with a market cap of over 10 billion. This rally is in stark contrast with falls in bigger coins, such as Bitcoin and Ethereum, highlighting the unusual stance of ZEC supported by privacy needs and halving effects. The surge also indicates actual use gains and an optimistic investor attitude.
The post Zcash News: Zcash Soars 20%: Halving Frenzy Ignites Privacy Coin Rally appeared first on Live Bitcoin News.