5 Minutes
Zcash rallies to multi-year peak
Zcash (ZEC) climbed to levels not seen in seven years, driven by rising on-chain activity, expanding use of its privacy features and renewed investor interest in privacy coins. Over the past week ZEC posted a dramatic uptick in price, trading volume and derivatives activity as traders and long-term holders reacted to fundamental and on-chain catalysts.
Quick market snapshot
From Oct. 23 to Oct. 30, ZEC jumped sharply from roughly $230 to an intraday high near $370 before cooling to the mid-$350s at the time of reporting. Trading volumes swelled alongside the price surge — rising from about $690 million to nearly $1.65 billion — signaling robust demand. Market capitalization also expanded to the multibillion-dollar range, reflecting renewed capital inflows into the privacy-coin sector.
Why Zcash is climbing
Several concrete developments underpin ZEC's breakout. On-chain metrics show a material rise in shielded ZEC holdings: nearly 4.94 million shielded coins, valued at roughly $1.76 billion, are now locked in privacy-enabled addresses. Shielded supply accounts for more than 30% of circulating ZEC, indicating increased adoption of Zcash’s privacy functionality rather than purely speculative accumulation.
Another important catalyst is renewed accessibility via fiat on-ramps. MoonPay added support for Zcash through its on-chain swap feature, and because MoonPay is integrated into Jupiter — a major decentralized liquidity aggregator in the Solana ecosystem — ZEC’s visibility across DeFi-native and emerging-market users has broadened. Greater on-chain accessibility often translates into deeper liquidity and a larger user base willing to transact ZEC natively.
Beyond Zcash itself, the entire privacy-coin cohort has seen surges, with projects like Railgun, Dash and Monero recording notable gains over the past month. That sector-wide momentum has contributed to broader investor rotation into anonymity-focused tokens.
Derivatives and trader behavior
Derivatives data shows an explosive increase in futures open interest. Open interest in Zcash futures climbed to a record near $515.4 million — an approximately 1,300% jump versus figures from one month prior. Such an influx typically signals higher speculative participation and greater leverage exposure, factors that can accelerate price moves in either direction.
Funding rates and long/short dynamics
Interestingly, despite price gains and historic open interest, the weighted funding rate remained negative, suggesting shorts were still paying longs and that short positions were sizable. At the same time, the long/short ratio flipped above 1, showing more traders were opening long positions. The coexistence of elevated shorts with rising longs creates a setup that could produce a short squeeze if buy-side momentum persists.
Technical outlook
On the 4-hour chart, ZEC has held above an ascending trendline that has offered support since late September. Historically, tests of this trendline have preceded sharp rallies over subsequent sessions, followed by temporary profit-taking. Momentum indicators are currently signaling bullish control: the MACD has crossed above its signal line and the RSI remains elevated above 70, which together point to sustained buying pressure.
Key levels to watch
Near-term resistance is clustered around $375 — a psychological hurdle and short-term technical ceiling traders will monitor closely. A decisive breakout above $375 could open a path toward the $400 region over the coming weeks, implying nearly 50% upside from current levels if momentum and demand remain intact. Conversely, a rejection at resistance or rapid unwinding of leveraged futures could trigger sharp selling and a retest of the ascending trendline support.
Risks and considerations for investors
Investors should weigh several risk factors. Privacy coins operate in a complex regulatory environment; increased regulatory scrutiny or policy shifts could affect liquidity and exchange listings. Elevated open interest and negative funding rates highlight concentrated leverage, which can produce outsized volatility. Finally, while on-chain adoption metrics — like growing shielded balances — are encouraging, they do not guarantee sustained price gains without continued trade and utility adoption.
Bottom line
Zcash’s recent surge reflects a mix of stronger on-chain fundamentals, improved accessibility through services like MoonPay, and renewed attention to privacy-focused crypto projects. Technical momentum favors further upside in the near term, with $375 and $400 as the key levels to watch. However, traders should remain mindful of leverage-driven volatility, regulatory risk for privacy assets and the potential for rapid position unwinds.
For crypto investors focused on privacy coins, ZEC’s run provides both an opportunity and a reminder: market advances can be swift, but so can corrections. Combining on-chain metrics, derivatives flows and technical signals offers a clearer picture of where Zcash may head next.
Source: crypto
Comments
atomwave
Wow didn’t expect ZEC to hit 7yr highs! Loving the privacy push, but RSI >70, leverage is high - could see a nasty pullback, still fun times for privacy coins tho
blocktone
is this even legit? Shielded >30% sounds massive but is it real activity or just parked coins? Negative funding yet rising longs... feels like a short squeeze waiting to happen, very risky, imo
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