Is Zcash expected to reach 800 this week? Arthur Hayes sells 5 million alts all-in on ZEC

Driven by renewed interest in the privacy Crypto Assets market, Zcash (ZEC) is experiencing a pump. After breaking through the $700 mark over the weekend, it slightly retraced to $624 on November 18. Legendary trader Arthur Hayes recently sold over $5 million in alts, but surprisingly, he decided to double down on Zcash, with technical indicators pointing to a target price of $800.

Zcash Monthly Pump of 236% Returns to Market Focus

(Source: CoinGecko)

Zcash is currently undergoing a significant price discovery phase. This weekend, it broke through the $700 mark, marking an important turning point for this cryptocurrency that seems to have lost its luster in recent years. On CEX exchanges, the ZEC/USD trading pair once reached a peak of $741, a level not seen in years.

During this period, trading volume surged, indicating a clear rebound in trader interest. A 236% pump within a month far exceeds the more moderate increases of major assets like Bitcoin or Ethereum during the same period. This outperformance shows that Zcash is attracting capital flows independent of the broader market, which is a typical characteristic of strong coins. Technical indicators show a strong upward momentum, currently at overbought levels, without triggering a significant pullback.

The technical support level is gradually consolidating around 600 USD, indicating that buyers remain active even after experiencing this incredible surge. Analysts are closely monitoring the price movement in this area to determine whether ZEC can maintain these levels or if it needs to enter a consolidation phase. The 600 USD level, as a round number and previous resistance turned support, holds significant technical importance. If Zcash can secure solid support at this level, it will lay the groundwork for the next push towards 800 USD.

The surge in trading volume is the most important confirmation signal for this rise. In the past 24 hours, trading volume has skyrocketed, currently accounting for a significant proportion of Zcash's circulating market value, confirming that this wave of increase is not manipulated by a few large holders, but rather widespread market participation. A healthy rise must be accompanied by increased trading volume; otherwise, prices can quickly fall back in the absence of buying support. The current trading volume configuration of Zcash indicates that this wave of increase is supported by actual funds.

Volatility remains high, which is a typical characteristic of assets with relatively low market capitalization. Daily fluctuations often exceed 10%, providing opportunities for active traders, but also requiring strict risk management. Market sentiment towards ZEC on social media and professional forums has significantly improved, which is a noteworthy contrarian indicator that helps predict potential reversals.

Hayes liquidates alts and solely holds Zcash, attracting attention

(Source: Arkham)

Legendary trader Arthur Hayes recently sold over $5 million worth of Crypto Assets, reducing his holdings to the lowest level in months. Surprisingly, while significantly reducing risk, he decided to double down on his holdings of Zcash. This contrarian strategy has sparked widespread discussion in the crypto community, as Hayes is known for his keen market insights and bold trading style.

The cryptocurrency market is currently experiencing severe volatility. A massive liquidation of over $620 million has shaken the entire industry, forcing even the most experienced investors to reassess their positions. Arthur Hayes was also not spared from this storm, but his response strategy was different from others. In the face of this panic market, the legendary trader decided to significantly reduce the number of altcoins he holds. This risk-reduction strategy aligns with the logic of preserving capital during periods of high uncertainty.

The decision to sell alternative assets worth approximately 5 million USD reflects the rare caution of this trader, who is usually considered aggressive. This defensive posture suggests that Hayes may anticipate the bear market trend continuing in the short term. Historically, altcoins, which are more volatile than Bitcoin, are often the first assets to be dumped when market sentiment deteriorates. However, his choice to retain and double down on Zcash positions reveals a firm confidence in the unique value of ZEC.

The Possible Logic Behind Hayes's Solo Staking of Zcash

Structural Growth of Privacy Demand: Regulatory authorities are increasingly strict with KYC requirements for centralized exchanges, driving investors to seek privacy protection alternatives.

Unmatched Technical Advantages: Zcash's zero-knowledge proof technology offers anonymity that traditional public chains cannot match, making it the most mature in privacy coins.

Severely Undervalued: Compared to other mainstream coins, Zcash has been overlooked by the market in recent years, and the current surge may just be the beginning of a valuation correction.

The reasons for choosing Zcash may lie in several technical and fundamental factors. On one hand, Zcash has a unique value proposition in the crypto ecosystem, positioning itself as a reliable alternative to transparent cryptocurrencies. On the other hand, the protocol has undergone significant updates recently, greatly enhancing its security and efficiency. This contrarian strategy demonstrates a strong conviction. Hayes did not follow the widespread panic market but instead seemed to find an accumulation opportunity in what he believes to be undervalued assets.

Privacy Coin Revolution and Regulatory Risks Coexist

The surge of Zcash reflects a renewed interest in privacy-focused Crypto Assets. The zero-knowledge proof technology adopted by ZEC offers a level of anonymity that traditional public chains cannot match. This technological feature meets the growing demand from users who prioritize privacy and wish to protect their financial data.

Multiple factors explain the reversal of this trend. The increased regulatory scrutiny on centralized exchanges has prompted some investors to seek alternatives that can protect their privacy. Meanwhile, Zcash's technological advancements have enhanced the user experience, making private transactions more convenient and cost-effective than ever. Other privacy coins, such as Monero, are also on the rise, although not as dramatically as ZEC. This correlation indicates a potential market trend rather than an isolated pump.

Despite the inherent regulatory risks associated with these assets, traders participating in this market segment expect this trend to continue. The question remains unresolved: is this merely a temporary sector rotation, or is it a structural shift in the capital allocation of Crypto Assets? If it is the latter, Zcash may have just begun the first phase of a long-term bull market.

Technical Analysis: $750 Resistance and $800 Path

(Source: Trading View)

For traders closely monitoring Zcash, there are several technical levels worth paying special attention to. The psychological resistance level of 750 dollars constitutes an important initial barrier. If the volume confirms a breakout above this resistance level, it may open the way to a range of 850-900 dollars, which corresponds to the Fibonacci retracement levels of the previous bull market cycle.

In terms of support, the $600-$620 area constitutes a solid first line of defense, and institutional buying in the order book has reinforced this support. If a larger pullback occurs, the $500 level will become a key strategic area for new entries. Although momentum indicators like RSI and MACD are still in the bullish zone on daily and weekly charts, signs of divergence have begun to appear. This divergence often indicates that upward momentum is starting to weaken, and it may be necessary to enter a consolidation phase before continuing to rise.