Raoul Pal Says Capital Rotation Could Be Fuelling Zcash Boom

Real Vision CEO Raoul Pal said the key signal indicating whether Zcash shows the start of a rally is if it can hold up during a broader market uptrend.

“Do I need that asset to say I was in earliest? I don’t really,” Pal told Kevin Follonier on the “When Shift Happens” podcast published on Thursday.

“We can’t prove it until the whole market goes up and it continues to trend and not a rotation,” he said. “Right now it’s confirming the rotation thesis.”

Zcash is trading at $385.81, up 699.07% since Jan. 1, according to CoinMarketCap. However, momentum has slowed down in recent weeks. Over the past 30 days, the token’s price has declined by approximately 37%.

Pal said the primary signal to watch will be whether Zcash can establish a strong floor price after its recent run-up. “What you want to see is whether it finds a base and then starts pulling up again,” he said. Over the past 30 days, Zcash’s price has declined by around 37%.

Pal said he is not eager to buy the crypto asset at current levels. “I’m not sure I’m going to chase it, but I might buy it in the next down cycle,” Pal said.

Zcash was posting price gains despite the broader crypto market being in decline. Its market capitalization rose from under $1 billion in August to a peak above $7 billion in early November.

Just a month earlier, on Oct. 26, Zcash rose 30% in 24 hours after crypto entrepreneur Arthur Hayes predicted the token could eventually reach $10,000.

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Meanwhile, institutional interest in the crypto asset has also increased.

Source: CoinTelegraph