Zcash (ZEC) has outperformed the broader crypto market over the past month, rising by over 125% compared to an average 15% gain for most coins.
ZEC/USD versus TOTAL crypto market cap 3o-day performance chart. Source: TradingView
The privacy-focused cryptocurrency may rally further in the coming weeks as a mix of bullish technical and fundamental catalysts converges.
Key takeaways:
- US crypto hedge fund Multicoin Capital revealed it has been buying ZEC since February.
- Robinhood will list ZEC as Zcash’s network activity has been booming in the past weeks.
- ZEC technicals are painting a 40% rally setup.
Multicoin disclosure boosts ZEC momentum
On Tuesday, Multicoin Capital, a US-based crypto hedge fund managing $2.687 billion in assets, revealed a “significant position” in ZEC, fueling speculation that institutional investors are warming up to privacy-focused digital assets again.
Its co-founder, Tushar Jain, revealed that the firm had been accumulating ZEC since February.
Jain described Zcash as “the most direct public market vehicle” for exposure to private, censorship-resistant and seizure-resistant money, framing the investment as a bet on rising demand for financial sovereignty and cypherpunk-style privacy tools.
Source: X
ZEC has rallied by over 43% in the past 24 hours, showing that traders have interpreted the Multicoin announcement as institutional validation of the privacy coin narrative.
ZEC’s flag breakout hints at further gains
From a technical perspective, Zcash has entered the breakout phase of a prevailing bull flag pattern on the weekly chart.
A bull flag forms when the price consolidates lower within a descending parallel channel after a strong uptrend. It resolves when the price breaks above the channel’s upper trendline and rises by as much as the previous uptrend’s height.
ZEC/USDT weekly chart. Source: TradingView
Applying that rule to ZEC’s chart puts its breakout target near $800. As of Wednesday, Zcash traded as high as $607, leaving the token on track to test the bull flag’s measured upside target located roughly 40% above.
Zcash’s weekly relative strength index (RSI), a momentum indicator that measures whether an asset is overbought or oversold, also suggests the rally may continue.
The RSI currently remains just below 70, a level traders typically associate with overheated market conditions, indicating ZEC may still have room to climb before buyers show signs of exhaustion.
BitMEX Co-Founder Arthur Hayes said ZEC’s target is 10% of Bitcoin’s market capitalization, a scenario that would imply a multi-trillion-dollar valuation for ZEC and prices potentially ranging between $8,000 and $10,000 per coin based on current supply levels.
Source: X
Robinhood listing, tightening ZEC supply adds tailwinds
Zcash’s breakout also has fundamental support.
ZEC has rallied alongside the broader crypto market as US–Iran peace-deal hopes improve risk appetite, mirroring patterns in early April.
Its Robinhood listing on April 23 added another tailwind by opening spot access to 25.9 million funded users, including those in stricter jurisdictions like New York.
Meanwhile, more than 30% of circulating ZEC now sits in shielded addresses, according to data resource ZecHub.WIKI. This tightening supply shows a big jump in demand for private on-chain transactions over the past year.
Zcash shielded supply weekly chart. Source: ZecHub.WIKI
