Key Insights: Zcash crypto soars as high as $857, entering uncharted territory. Zcash ETF may become a reality courtesy of GrayScale. ZEC open interest soars to $1.5 billion as Grayscale cast
Zcash crypto just joined the list of a few cryptocurrencies that surged to new all-time highs this week. The demand fueling its momentum was driven not only by recent market excitement but also by Zcash ETF-related hype.
Zcash crypto just had its most bullish week in the last 12 months. The privacy coin was up 62% this week, trading at $793 at press time.
However, the cryptocurrency previously surged to $857 on Saturday morning. This was officially the highest price Zcash crypto has achieved since its launch.
Zcash crypto price action | Source: TradingView It was worth noting that ZEC price was not overbought on the weekly chart. However, it was already deep in overbought territory on the daily chart and was already within levels where it had pivoted multiple times in the past.
Part of the bullish momentum behind the ZEC crypto price this week may have stemmed from expectations for a ZEC ETF. A recently published Grayscale Zcash Trust filing revealed that a listing could take place on 25 August.
Source: SEC The filing revealed that Grayscale’s Zcash Trust will be converted into a Zcash ETF, with an official launch expected soon. The filing also revealed that the ETF will be listed on the NYSE Arca.
Grayscale previously submitted an S-3 filing with amendments revealing that Coinbase would offer custody services for the Zcash ETF. But what exactly does this all mean for Zcash crypto and its price action?
High-profile ETF launches have historically had a major impact on price. The days leading up to the official launch tend to trigger heavy pre-launch accumulation. The old “by the rumor, sell the news” kind of approach.
The hype around the upcoming Zcash ETF may have thus contributed to the bullish momentum that propelled the privacy coin to new historic highs this week. However, the fact that ZEC crypto price was already high in overbought territory may limit more upside in the short term.
A potential retracement could be in the works, especially if the rest of the market pulls back after the latest market excitement.
Zcash spot flows revealed heavy inflows in the second half of the week. This was the highest weekly spot inflow activity observed since November last year.
However, CoinGlass data showed that the robust spot activity was followed by heavy derivatives activity. This was evident in the massive spike in ZEC open interest. The latter spiked from as low as $770 million at the start of August to $1.5 billion at the time of observation on CoinGlass.
ZEC crypto open interest | Source: CoinGlass Interestingly, open interest in May was higher than it currently is. More importantly, this spike in open interest was backed by the largest spike in positive funding rates observed so far this year.
Positive funding rates suggest that the market has been positioning for the upside. In other words, Zcash crypto may have just secured a large wave of long positions.
But will the privacy coin actually maintain the bullish momentum for a while longer? That remains to be seen, but it does underscore potential for heavy long liquidations if ZEC price pivots to the downside.
The fact that it was already overbought and overstretched to the upside may invite profit-taking. This means the risk of a retracement remains elevated, especially if demand fails to keep up.
The post Zcash Crypto Clocks New All-Time High as ETF Hype Triggers Excitement appeared first on The Coin Republic.
