Zcash (ZEC) rallied on the hype surrounding Cypherpunk Technologies’ ZEC token acquisition and reached above $500. But as the excitement has faded away, the coin is struggling to push past the $540 resistance level. However, Cypherpunk is not done with buying.
In its latest acquisition, Cypherpunk Technologies acquired 56,418 Zcash for approximately $29 million, which brought its total Zcash holdings to 290,062 tokens.
The Nasdaq-listed biotech company, which recently shifted into the crypto space, has been heavily acquiring Zcash in their aim to achieve the goals of their treasury strategy.
The company stated that it has a goal of acquiring 5% of the total supply of Zcash, which is more than 800,000 Zcash coins. Based on the current price of Zcash, a total purchase of 800,000 ZEC will sum to a grand total of more than $440 million. Cypherpunk has completed a third of its goal, as it now has around 1.8% of the ZEC total supply in its treasury.
Cypherpunk acquisition catapults ZEC
The acquisition got ZEC on an uptrend, which helped it make higher lows and once again get above the $500 price level. However, now that the acquisition is over, the hype and the excitement behind this rally seem to be over, as Zcash is struggling to clear the resistance level at $542.
The Relative Strength Index indicator does not show any extreme condition, but the price has already started to show exhaustion. This shows that the hype has died and Zcash seems to have gassed out.
Given that the exhaustion turns to a retracement and Zcash maintains its uptrend shape, there is a high chance that the coin could crash to $450 for support.
But let’s not forget Cypherpunk Technologies’ strategy of acquiring 5% of the total supply of ZEC. The company may be waiting for the prices to crash to this support level to scoop up another portion of Zcash. When they make the acquisition, there could be another rally that helps ZEC break above the $540 resistance level.
