In recent days, the cryptocurrency market has thrown a curveball at Zcash (ZEC): after suffering a sharp 14 % drop, many traders nonetheless remain bullish and continue to set their sights on the lofty target of $1,000. Why is this happening? Let’s dig into the reasoning, the supporting on‑chain data, and the caveats all investors should keep in mind.
Strong on‑chain signals
Several on‑chain metrics for Zcash are flashing green, despite the recent price correction:
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The so‑called Puell Multiple—which measures miners’ revenue relative to historical norms—shows that miners are still making profits and have not yet been forced into large‑scale sell‑offs.
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The network hash rate has risen significantly, indicating increased mining and network activity.
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Zcash’s 24‑hour trading volume spiked ~138 %, reaching about $4.61 billion, hinting at renewed market participation after a lull.
These signals suggest that even though the price dropped, the underlying ecosystem of ZEC remains resilient—and some investors interpret that resilience as the foundation for a rebound.
Renewed investor interest & accumulation
Another theme is that accumulation, rather than distribution, appears to be taking place:
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After a stretch of heavy selling between November 3 and November 7 (totaling ~$153.49 million in ZEC), the tide seems to be turning: traders bought back ~$34.46 million worth of ZEC in the most recent 24 hours.
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Anecdotally, prominent market participants are showing conviction: Arthur Hayes, co‑founder of BitMEX, revealed that his family‑office vehicle holds ZEC as its second‑largest liquidity holding after Bitcoin. This kind of endorsement lends psychological weight.
When large players hold or accumulate and smaller players notice on‑chain signals lighting up, it often bolsters a bullish narrative.
The $1,000 target: Rational or speculative?
So why is $1,000 the target? A few reasons emerge:
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ZEC is approaching prior resistance zones (“peak price” levels) on the chart, which historically have acted as turning points.
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Breaking toward $1,000 would mean Zcash enters “price discovery” territory—i.e., new highs without historical precedent, which some traders love because of the high reward potential.
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The convergence of strong miner metrics, network hashes, increased volume and accumulation create an environment where upward momentum could build.
But it’s not all smooth sailing: the $1,000 mark is also a major resistance zone and reaching it would likely attract profit‑taking, hence risking sharp pullbacks.
Key risk factors
No bullish thesis is complete without acknowledging risks:
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Just because miner metrics are good today doesn’t guarantee they remain so, especially if network difficulty increases, block rewards drop, or macroeconomic factors turn negative.
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The surge in volume and accumulation could conversely signal a climax rather than a sustained run; high volume around a bottom can mean capitulation, and around a top could mean distribution.
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The broader crypto market remains volatile and sensitive to regulatory news, macro shifts, or large‑scale liquidations—ZEC is not immune to systemic risk.
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Technical resistance at or near $1,000 could mark a major reversal zone; if it fails to break and hold above it, traders may see a sharp pull back to lower levels.
What to watch going forward
For traders or investors keeping an eye on ZEC, here are a few key indicators to monitor:
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Miner profitability / Puell Multiple: If profits collapse, it may trigger miner sell‑offs and weaken the momentum.
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Hash rate / network activity: Sustained high hash rates and growing transaction activity are positive signs of organic interest.
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Trading volume and accumulation data: Are large wallets continuing to accumulate, or is the market showing signs of weakening?
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Price action around $1,000: Will ZEC break above $1,000 convincingly with follow‑through, or will it get rejected and retreat?
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Broader market conditions: Even the strongest altcoin can falter if Bitcoin or the crypto market in general enters a down‑leg.
Conclusion
In summary: despite a recent ~14 % correction, many traders are optimistic about Zcash’s upside and continue to target $1,000. Their optimism is grounded in improving on‑chain fundamentals, renewed accumulation, and a belief that ZEC may re‑enter discovery mode. But it remains a high‑risk / high‑reward setup: momentum is still unproven at the $1,000 threshold, and external factors could easily derail the rally.
As always: this is not investment advice. Anyone considering ZEC—or any cryptocurrency—should research carefully, assess their risk tolerance, and only invest funds they are prepared to lose.
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