Zcash: A 20% Drop but a Strong Treasury Bet – ZEC Earns a Significant Boost!

Reliance Global Group has completely converted its Digital Asset Treasury (DAT) into Zcash (ZEC).
Despite the recent decline, it appears the sell-off may be easing.
Although ZEC experienced a nearly 20% drop last week, some investors remain optimistic.
An update on the Digital Asset Treasury has created positive momentum for Zcash beyond what the price charts indicate.

Key Takeaways

Reliance Global Group has completely converted its Digital Asset Treasury (DAT) into Zcash (ZEC).
Despite the recent decline, it appears the sell-off may be easing.
Although ZEC experienced a nearly 20% drop last week, some investors remain optimistic.
An update on the Digital Asset Treasury has created positive momentum for Zcash beyond what the price charts indicate.

Zcash: A 20% Drop but a Strong Treasury Bet – ZEC Earns a Significant Boost!

A Major Shift to Zcash

Reliance Global Group has fully transitioned its Digital Asset Treasury (DAT) into ZEC, divesting from all other cryptocurrencies. This decision followed a comprehensive strategic review by its Crypto Advisory Board, which determined that ZEC presents the strongest potential for long-term value.

Reliance Group Statement

In a recent statement, the company highlighted the privacy features of Zcash, its Bitcoin-based framework, and its compliance-friendly design as significant advantages. AMBCrypto previously reported a substantial rise in Zcash’s value over the past three months, which helps explain the company’s confidence.

Ezra Beyman, Chairman and CEO of Reliance Global Group, stated, “As we assessed the rapidly changing digital asset market, it became clear that Zcash’s privacy framework and adaptability for institutions align more closely with our strategic vision than a varied crypto portfolio.”

Facing Pressure

Recent data indicates a clear risk-averse trend in the market. Major cryptocurrencies like BTC, ETH, SOL, and BNB have seen ZEC decline between 13% and 18% over the past week, suggesting ZEC is relatively underperforming.

Market Performance

Nonetheless, Zcash’s 24-hour movements have mostly stabilized, indicating that the selling pressure is tapering off.

Open Interest

Furthermore, Open Interest (OI) in ZEC has only slightly decreased and remains near $695 million, suggesting that traders have not entirely closed their positions. Funding Rates are also negative, indicating a continued short bias; however, there is no aggressive buildup of leveraged positions.

Slowing Momentum

As of the latest updates, ZEC is trading at approximately $496, reflecting a weekly decrease of over 20%. The price has dropped below the 20-day Exponential Moving Average (EMA), indicating weakened short-term momentum. Meanwhile, the 50, 100, and 200-day EMAs are still significantly lower, indicating that the broader trend remains intact.

Zcash Indicators

The Relative Strength Index (RSI) shows a decrease in buying strength, with no indication of oversold conditions at this time. Additionally, the Chaikin Money Flow (CMF) suggests that capital flows have turned negative, reflecting growing selling pressure. ZEC has spent the past week consolidating under these challenging conditions, allowing potential for recovery if demand resurfaces.