Zcash (ZEC) has recently taken the cryptocurrency market by storm, surging over 130% in the last month and establishing itself as the leading privacy coin in the space. With the price now trading around $417, ZEC has experienced a robust rise of more than 50% in a week alone.
The rally was propelled by a significant short squeeze that resulted in the liquidation of over $65 million in ZEC futures. A striking 65% of traders had been holding short positions on ZEC as of November 1. When ZEC prices began to climb, these traders were compelled to settle their positions, exacerbating the upward momentum and further driving the price higher.
In the wake of this price surge, notable figures from the crypto community have expressed optimistic projections for Zcash. Arthur Hayes, co-founder of BitMEX, set a bold price target of $10,000 for ZEC, sparking considerable buying enthusiasm across social media platforms. This sentiment was followed by a spike in the number of ZEC holders, which saw a remarkable 63% uptick shortly after Hayes’ announcement.
Within hours of his prediction, Zcash’s price shot up from $272 to $355, although large holders took advantage of the price movement, leading to net sales reaching $702,000. Market observers are now closely monitoring the $581.43 liquidation level, as a breakout above this threshold could instigate further short position closures and ignite another buying wave.
Upcoming Halving Event Drives Interest
The anticipation of a halving event scheduled for November 2025 has also fueled excitement among investors. This event will halve the mining rewards from 3.125 ZEC per block to just 1.5625 ZEC per block. Historically, halvings have resulted in increased scarcity in the market, often leading to price rallies if demand remains consistent or grows.
On the technical side, Zcash has recently broken free from an 8-year downtrend against Bitcoin, marking a significant shift in its trajectory. This breakout, confirmed by a monthly logarithmic chart, signifies the first escape from this long-term pattern since 2017, indicating strong buying momentum. The relative strength index (RSI) is currently around 64, implying that while ZEC is nearing overbought territory, there is still potential for further gains.
Zcash’s recent performance has allowed it to eclipse Monero, boosting its market cap to an impressive $6.2 billion. This growth has been reinforced by technical enhancements to the Zcash protocol, including the removal of the trusted setup through the Orchard pool, which greatly improves its privacy features.
Moreover, search interest for privacy coins has reached unprecedented levels on Google Trends, reflecting a growing concern regarding surveillance and regulatory scrutiny in the cryptocurrency landscape. This trend suggests that investors are increasingly seeking alternatives that provide enhanced privacy protections.
The market’s current price action signals that Zcash’s momentum could continue, particularly if it manages to break through the key resistance level at $420. Holding support around the $400 mark will be crucial to avoid potential price corrections. As the market continues to evolve, ZEC’s future remains a focal point for investors and traders alike, particularly those looking for privacy-oriented digital currency solutions.
In summary, Zcash has made a remarkable ascent, and as it positions itself as a dominant player in the privacy coin arena, all eyes will be on how it navigates the challenges and opportunities ahead.
