TL;DR
- Institutional boost: Grayscale’s new Zcash Trust quickly attracted $46 million in assets, giving ZEC stronger visibility among accredited investors and fueling its rapid price surge.
- Technical rally: ZEC broke through $120 resistance and surpassed key Fibonacci levels, with RSI at 92.6 and MACD momentum confirming the strength of the ongoing bullish trend.
- Market impact: Open interest in ZEC derivatives jumped 138% to $144 million, lifting its market cap to $2.36 billion and inspiring gains in other altcoins.
Zcash (ZEC) has delivered one of its most dramatic rallies in recent memory, surging to $145.90 after climbing more than 57% in a single day and 144% over the past week. The explosive move has propelled the privacy-focused cryptocurrency to its highest level since mid-2022, far outpacing the broader digital asset market. The catalyst behind this surge is Grayscale’s launch of a dedicated Zcash Trust, which has already attracted tens of millions in institutional capital.
Grayscale Trust Fuels Institutional Demand
The introduction of the Zcash Trust by Grayscale has been the defining factor in ZEC’s sudden breakout. The product, available to accredited investors through private placement, has already accumulated over $46 million in assets under management. Each share carries a net asset value of $9.70, signaling strong early demand. By adding ZEC to its lineup of digital asset trusts, Grayscale has elevated the coin’s profile among institutional players, reinforcing its legitimacy in a competitive market.
Technical Breakout Above Resistance Levels
ZEC’s rally has been reinforced by a decisive technical breakout. The coin surged past the $120 resistance level and cleared the 61.8% Fibonacci retracement at $111, measured from its May 2021 peak of $372 down to the July 2024 low of $15. Analysts suggest that maintaining momentum above these thresholds could pave the way toward the 78.6% retracement near $189. Indicators confirm the bullish setup, with the Relative Strength Index soaring to 92.6 and the MACD histogram showing accelerating upside momentum.
Derivatives Market Activity Surges
The derivatives market has amplified ZEC’s rally. Data from CoinGlass shows open interest skyrocketed by 138% in just 24 hours, reaching $144 million. This surge in leveraged positions highlights the influx of speculative capital chasing the rally. At the same time, Zcash’s market capitalization has expanded to $2.36 billion, cementing its position among the week’s top performers. The rally has also inspired gains in other altcoins, including DeXe (DEXE) and MYX Finance (MYX), which posted double-digit increases.
Outlook and Potential Risks
Looking ahead, analysts see $189 as the next major target if ZEC holds above $120. However, traders caution that profit-taking could emerge after such a steep climb. A drop below $111 could trigger a retest of $100, with deeper support near $76 at the 50% Fibonacci retracement. With institutional adoption, heightened derivatives activity, and strong technical momentum, Zcash has reemerged as one of the most explosive altcoins entering October.
