Zcash (ZEC), a privacy-focused altcoin built on zero-knowledge proofs, continues to dominate community discussions in November. The token has shown unique momentum that sets it apart from broader negative market sentiment.
Many experts predict that ZEC could reach $1,000 this year based on several factors. The analysis below will analyze these factors in detail.
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Why Zcash can reach $1,000
First, ZEC is no longer behaving like a short-term speculative asset. It is evolving into a strategic reserve asset.
Cypherpunk Technologies Inc., backed by Winklevoss Capital, recently announced the purchase of an additional 29,869.29 ZEC worth approximately $18 million. This acquisition complements the company’s previous purchase of 203,775.27 ZEC. As a result, Cypherpunk currently holds a total of 233,644.56 ZEC with an average entry price of $291.04 per unit.
Therefore, analysts expect more companies to follow this trend and accumulate ZEC as strategic reserves. Some are hoping for approval for the ZEC ETF.
“The Winklevoss twins have launched the first ZEC DAT. The privacy coin DAT is not legal to hold in many regions, so expect higher mNAV and stronger buying pressure. ETFs are likely to be similar. Shielded/unshielded will act as a Trojan horse for global privacy” – predicts Mert, CEO of Helius.
Second, Zcash has proven its independence from Bitcoin. Its movements are no longer driven by the volatility of the “king of cryptocurrencies.”
Over the past month, Zcash and Bitcoin have maintained a negative correlation. When Bitcoin fluctuates, ZEC often moves in the opposite direction or remains more stable.
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DeFiLlama data confirms this negative correlation. This shows that ZEC has its own drivers and is not dependent on Bitcoin’s volatility.
Bitcoin usually leads altcoin trends. However, Zcash breaks this pattern because of its focus on privacy. During periods of negative BTC volatility, maintaining a negative correlation is a big advantage for ZEC.
Third, the increase in social discussion around Zcash has exceeded that of Bitcoin, indicating growing interest from retail investors.
According to LunarCrush data, Bitcoin remains in the lead in terms of total mentions with 17.97 million. Zcash recorded 346,72,000 mentions. Still, ZEC’s discussion growth rate over the past year reached +15,245%. Bitcoin’s growth rate was only +190%.
Finally, technical indicators suggest a possible breakout.
According to X analyst Ardi, the ZEC chart is forming an inverted head-and-shoulders pattern on the 4-hour time frame. This setup suggests a target of $800 to $1,000 if ZEC breaks above the $680 to $700 neckline.
Additionally, BeInCrypto’s recent analysis supports this outlook. A daily close above $748 opens the way to $1,010 and $1,332. Once below $488, the setup will be invalidated and the structure will be reset.
