Zcash treasury Cypherpunk Technologies acquires $29 million additional tokens as ZEC battles key resistance
- Cypherpunk Technologies said it purchased $29 million worth of Zcash tokens, boosting its stash to 290,062 ZEC.
- The company plans to accumulate 5% of Zcash's circulating supply.
- ZEC could leap above $600 if it clears the $550 resistance.
Zcash (ZEC) treasury firm Cypherpunk Technologies (CYPH) announced on Tuesday that it has acquired 56,418 ZEC for $29 million. The company executed the latest purchase at an average price of $514 per ZEC.
As a result, its stash has grown to 290,062 ZEC, or 1.76% of Zcash's total supply, worth over $150 million at the time of publication. Cypherpunk plans to accumulate 5% of ZEC's total supply.
"As our Zcash position grows, we are well positioned for a market that is repricing the societal importance of privacy," said Cypherpunk CIO Will McEvoy in a statement on Tuesday. "We are excited to continue executing on our Zcash strategy while expanding our work across a broader set of privacy-preserving technologies and initiatives."
Following a rebrand from Leap Therapeutics in November and an explosive growth in privacy-based tokens, Crypherpunk raised over $58 million via a private placement to launch a Zcash treasury.
The Nasdaq-listed firm is backed by crypto exchange Gemini co-founder Tyler Winklevoss, with Zcash co-founder Zooko Wilcox serving as an advisor.
CYPH is trading around $1.27, up 8% at publication time on Tuesday.
Zcash Price Forecast: ZEC could rise above $600 if it clears the $550 resistance
ZEC is testing the resistance near $550 after bouncing off the support of an ascending triangle pattern last week. A rise above $550 could push ZEC above $600 toward the resistance near $616. A sustained rally could see ZEC challenge the $728 level before aiming for its all-time high resistance.
On the downside, Zcash could find support at the triangle's lower boundary if it sees a rejection at its resistance. A breach of the triangle could push ZEC toward $375.
The Relative Strength Index (RSI) is above its neutral level while the Stochastic Oscillator (Stoch) is in its overbought region, indicating a dominant bullish momentum. Sustained overbought conditions in the Stoch often lead to a short-term pullback.
Author
Michael Ebiekutan
FXStreet
With a deep passion for web3 technology, he's collaborated with industry-leading brands like Mara, ITAK, and FXStreet in delivering groundbreaking reports on web3's transformative potential across diverse sectors. In addi
