Grayscale Founder on Zcash Drop: "Making Popcorn for Massive Short Squeeze"
Privacy coin Zcash (ZEC), which has been in the spotlight in recent months owing to its surge beginning from late September, is down by more than 38% in the past seven days as traders capitalize on heavily overbought conditions.
Zcash fell by a further 5.66% in the past 24 hours to trade at $331 at press time. It is now down by 34.51% over the past seven days as traders begin to take profits after a major rally between September and November.
Zcash's drop in the last 24 hours comes despite a broader market rally, which saw a handful of altcoins post significant gains, prompting the attention of the market.
Amid the drop, Grayscale founder Barry Silbert, Zcash bull, hints at a major price move coming for Zcash, saying he was "busy making popcorn for a short squeeze."
Silbert once named Zcash as one privacy coin he was particularly excited about, predicting privacy to become a more popular investing theme.
Zcash massive surge ahead?
Zcash has steadily declined since reaching a high of $739 on Nov. 16, and in the process lost a key support, which held it up when it began rising in September, which is at the daily SMA 50 at $436.
The conversation surrounding Zcash focuses on what comes next for its price, with Grayscale founder Barry Silbert hinting at a massive price surge coming, fueled by a short squeeze.
In response to a tweet made by the Zcash founder, Solana contributor Mert Mumtaz had asked the Grayscale founder to make a bid on ZEC. This was not far-fetched given Silbert's history with Zcash.
This the Grayscale founder playfully responded to, saying he was "busy making popcorn for the massive short squeeze."
A short squeeze in the context of the Grayscale founder's tweet refers to a rapid increase in the price owing primarily to an excess of short selling rather than underlying fundamentals. As short traders expect the price to decline further, a sudden wave of buying pressure "squeezes" them out of the market and triggers a price surge.