ZEC Rises 3.55% Amid Investor Endorsements and Derivative Position Growth

On November 6, 2025, Zcash (ZEC) surged by 3.55% in the past 24 hours, reaching $490.4. Over the last 7 days, ZEC climbed 20.16%, 22.39% in one month, and an impressive 780.06% year-to-date. These gains are attributed to growing institutional and individual investor interest, with significant endorsements from industry figures and rising leveraged positions on derivatives platforms.

The price rally was catalyzed by prominent crypto and tech figures voicing support for ZEC as a privacy-focused hedge against Bitcoin. On October 1, Naval, a well-known Silicon Valley angel investor, declared ZCash to be a form of "insurance against Bitcoin," a statement that initiated the asset’s upward trajectory. Since then, ZEC has surged by 575%. Arthur Hayes, co-founder of BitMEX, further fueled enthusiasm with a bullish forecast on October 30, stating, “Nothing can stop this train; ZEC will rise to $10,000.” Hayes reiterated this sentiment recently, suggesting that ZEC should be a core holding as the “money printer” resumes activity in 2026.

The privacy coin sector’s overall valuation has grown in tandem with ZEC’s performance, reaching $25.5 billion, with a 2.9% 24-hour increase. Trading volume for ZEC totaled $3.87 billion in the same period, indicating strong liquidity and investor participation.

Derivatives markets also show signs of ZEC’s increasing appeal. On Hyperliquid, a trader increased their long position in ZEC to $13.7 million with 5x leverage. The position, entered at $352.5, currently holds an unrealized profit of $3.1 million, with a liquidation price at $304.6. This demonstrates the growing speculative appetite for ZEC among derivative traders, who are increasingly bullish on its near-term prospects.

Technical indicators used in the backtest include moving averages and relative strength index (RSI), which help determine entry and exit points. A common backtest strategy is to monitor days where ZEC experiences a 5% or more daily price increase, as these events often signal significant momentum shifts.

Backtest Hypothesis

To evaluate the performance of ZEC after significant daily price surges, a backtesting strategy can be applied using the event of a “close-to-close daily return ≥ +5%.” This approach allows for the analysis of subsequent price movements, assessing whether such surges historically lead to profitable opportunities.

For instance, if we backtest this event on ZEC from January 1, 2022, to November 6, 2025, the goal is to detect every day where ZEC's daily return reached or exceeded 5%. Following these events, one could hold the position for a specified number of days, such as 10, or until a stop-loss or take-profit condition is met.

Additionally, risk-control parameters such as a 10% stop-loss and a 20% take-profit could be added to manage downside risk while capitalizing on upside potential. This structured methodology would provide insights into the viability of capturing momentum in ZEC during periods of strong investor confidence.