Here’s Why Zcash (ZEC) Price Tanked 10% Today Following 500% Rally

Zcash price tumbled over 10% in the last 24 hours after a more than 500% parabolic rally in a month. This comes amid profit booking by whales and traders as ZEC privacy coin entered the distribution phase after a splendid rally supported by various catalysts.

Why Zcash Price Falling 10% Today?

Zcash price defied recent crypto market crash and continued its parabolic run in a month. ZEC’s comeback was triggered by Grayscale’s announcement of opening Zcash Trust for private placement for eligible accredited investors on October 1. Also, Hyperliquid announced ZEC listing with up to 5x leverage.

A recent post of BitMEX co-founder Arthur Hayes further fueled speculation of a further rally. He highlighted a Zcash price target of $10,000, causing investors to buy massive amounts of the token. This triggered a more than 30% jump in Zcash price in a single day.

However, many claimed ZEC is in the distribution phase after the halving event last November. Today, CryptoQuant CEO Ki Young Ju also highlighted that the privacy coin is indeed in the distribution phase, as evident from the Zcash Spot Volume Bubble Map.

Moreover, the Spot Retail Activity metric shows that retail investors are mostly buying Zcash now. On his alternative X account, CryptoQuant CEO confirmed that he has started selling his Zcash holdings after the massive rally.

ZEC Profit Taking Amid Capital Rotation

Zcash price fell 11% in the past 24 hours, with the price currently trading at $322.52. The 24-hour low and high are $322.78 and $371.59, respectively. Furthermore, the trading volume has decreased by 50% in the last 24 hours, indicating a decline in interest among traders.

Moreover, whales and traders are profit-booking as indicators flashed selling signals. Notably, the RSI hit 80.88, signaling the privacy coin as overbought.

CoinGlass data showed massive selling in the derivatives market. At the time of writing, the total ZEC futures open interest plunged 14% to $462.42 million in the last 24 hours. ZEC futures open interest on Binance, Bybit, and KuCoin tumbled almost 13%, 20% and 30%, respectively.