Zcash Surges Past $600, Breaks into the Top 20—A Comeback Story or Just a Short-Lived Rally?

In a dramatic turn, the privacy token, Zcash (ZEC), has surged past $600, climbing its way back up to be among the top 20 cryptocurrencies by market capitalization. The sharp rally marks a sporadic rebound for a token long considered dormant. At press time, the coin is trading around $604.40, with a market capitalization of about $9.95 billion.

The price boom has caused an uproar, leaving market participants, including long-term and short-term investors, wondering if this is the start of a comeback or just another short rally fueled by market hype

ZEC’s recent breakout in price above $600 is propelled by renewed investor interest in privacy-oriented cryptocurrencies in an era where data security and anonymity are paramount. The protocol’s shielded-transaction functionality and optional anonymity features have gained more attention amid heightened regulatory and surveillance concerns.

Platforms like Digitap’s crypto bank are pushing the evolution of compliant privacy through secure digital wallet infrastructure. By merging user autonomy with transparent on-chain activity, Digitap’s model enables traceable proof-of-reserves without exposing sensitive data, bridging the gap between security and compliance, much like Zcash’s renewed relevance in today’s regulatory landscape.

ZEC Breaks all Resistance

On the 4-hour chart, ZEC is trading at $613, showing a strong bullish structure. The Money Flow Index (MFI), a key indicator used in measuring buying and selling pressure by combining price and volume data to understand the market strength, has surged past its overbought region and now stands at 81.91, underscoring firm buyer dominance and rising market liquidity. This heightened inflow of capital signals renewed confidence among traders after a consolidation phase.

Similarly, the Relative Strength Index (RSI), a key momentum indicator that measures whether an asset is overbought (above 70) or oversold (below 30), reflects the same bullish sentiment, having now flipped toward the overbought region at 70.25. Such readings typically suggest strong upward momentum, though they can also precede short-term corrections as traders lock in profits before the next potential leg higher.

ZEC/USD 4-Hour Chart | Credit: TradingView

If this momentum persists, Zcash’s price could trade above $663.08.

ZEC’s Price Outlook: Bullish

The daily chart reveals ZEC’s reversal from a long-term descending channel into an uptrend channel, indicating a technical breakout from multi-month resistance. At press time, the Moving Average Convergence Divergence (MACD), an indicator used in measuring trend direction and momentum strength, shows a bullish crossover. The 12 EMA (blue) has crossed above the 26 EMA (orange), with multiple green histogram bars, typically signaling buyers’ dominance.

Additionally, the Bull Bear Power (BBP) is currently in the positive territory and has printed consecutive long green histogram bars, with the bulls maintaining a clear upper hand over the bears.

ZEC Daily Chart | Credit: TradingView

The Fibonacci retracement level further reflects ZEC’s price trajectory. At press time, the privacy coin is trading at $621.57 and is trending towards the 1 Fib level at $664.53. A sustained break above this point might lead to ZEC’s printing new record time highs.

However, a break below the 0.786 Fib level could result in a bearish trend reversal, causing the price to dip below 527.48.

Future Outlook and Risks: Road to $1000

Beyond the technical chart, Zcash derivatives data reveal a growing bullish bias among traders. At the time of writing, ZEC’s open interest, a metric that tracks the total value of outstanding futures and perpetual contracts, has risen by over 22.96% in the past 24 hours, with more than a 66% surge in volume, signaling fresh capital inflows into the market.

ZEC Derivatives Data | Credit: Coinglass

This uptick reflects renewed speculative interest, with traders increasingly positioning for continued upside movement.

Analysts are divided on whether Zcash’s latest breakout marks the beginning of a long-term recovery or a short-lived rally fueled by speculation. Supporters argue that growing concerns over surveillance and data privacy could propel privacy-focused cryptocurrencies back into the spotlight. With its unique shielded transaction technology, Zcash is positioned to benefit from this narrative as investors increasingly value anonymity in digital finance.

Market analysts also point to the coin’s recent breakout above key resistance levels, combined with rising trading volumes, suggesting renewed investor confidence. As analyst Follis wrote on X, “$ZEC erasing four years of downtrend in a single candle. Insane!” It’s hard to disagree. For long-time holders, this move feels like a long-overdue redemption arc.

Several other analysts in the cryptocurrency space believe ZEC has room to run further if it can maintain its breakout momentum and resist major pullbacks. Targets like $1,000 by 2026 are mentioned, assuming favorable conditions. Former BitMEX CEO Arthur Hayes points to the token reaching $1000 soon. “Next stop $ZEC = $1K,” he wrote excitedly on this X account.

However, some skeptics warn that such a surge may be momentum-driven rather than fundamentally supported, arguing that privacy coins still face stringent regulations, particularly under the European Union’s new Markets in Crypto-Assets (MiCA) framework.

The updated rules, which tighten oversight on anonymous transactions and mandate enhanced transparency from crypto service providers, could significantly limit the use and exchange of privacy-focused tokens like Zcash across regulated platforms.

As digital privacy gains institutional attention, Digitap continues to lead innovation in crypto-fiat bank architecture, bridging decentralized assets with regulated finance. By offering a unified platform for on-ramp crypto and off-ramp crypto to fiat, along with its crypto wallet, Digitap ensures that users and institutions can move funds securely, privately, and efficiently.

Conclusion: Implications for investors

Zcash’s rally past $600 reflects renewed demand for privacy coins but also brings up skepticism. While its strong technical indicators and rising volumes hint at a genuine comeback, rising regulatory scrutiny could limit its uptrend. For investors, ZEC’s surge serves as an opportunity to amass profits while it lasts, but also to take precautionary measures in preparation for crypto markets’ volatility cycles.