Privacy coin Zcash (ZEC) has recently captured market attention due to significant price volatility, transitioning from a robust rally to a sharp correction. Amidst this uncertainty, the crypto community is keenly observing its future trajectory, particularly in light of bullish predictions from influential industry figures.
Zcash Experiences Significant Price Pullback
After a notable surge between September and November, Zcash (ZEC) has undergone a substantial price correction, falling over 38% in the past seven days. This downturn is largely attributed to traders cashing in profits after the earlier rally. The privacy coin's value dropped to $331, even as the broader altcoin market experienced a rally. Furthermore, Zcash lost a critical support level at the daily SMA 50 of $436, which had previously underpinned its upward movement since September.
Barry Silbert Predicts a "Massive Short Squeeze" for ZEC
Despite the recent bearish trend, Grayscale founder and prominent Zcash supporter Barry Silbert maintains a strong bullish outlook for ZEC. Silbert recently teased a "massive short squeeze" for Zcash, humorously stating he was "busy making popcorn." A short squeeze typically happens when an asset's price rapidly increases, compelling short sellers to purchase shares to cover their positions, which in turn drives the price even higher. Silbert has a history of championing Zcash, having previously identified it as a privacy coin he was particularly enthusiastic about, forecasting privacy as an emerging investment theme. His recent comments signal continued confidence in a substantial upward price swing for ZEC.
