Zcash Rally: Why Traders Believe ZEC Could Reach $875
Zcash (ZEC) has witnessed a dramatic upswing, surging more than 30% in value within a single day, driven by renewed market interest and a wave of bullish sentiment. This impressive rally has pushed ZEC’s price to approximately $673 at the time of writing, backed by a sharp 82% increase in trading volume. With its market capitalization jumping 35%, Zcash has climbed into the top 15 cryptocurrencies by market cap, now sitting at position twelve.
The catalyst behind this resurgence? Anticipation surrounding the upcoming launch of shielded ZEC transactions via the Zashi wallet—a new feature powered by Near Intents that will allow users to privately swap other cryptocurrencies into shielded Zcash. This development represents a significant step forward in Zcash’s long-standing mission to provide privacy-centric financial tools.
Shielded ZEC Transactions Fuel Market Optimism
The upcoming Zashi wallet integration is poised to revolutionize how users interact with Zcash. Starting next week, it will allow private conversions of assets like Bitcoin into shielded ZEC, preserving anonymity and confidentiality. This functionality is anticipated to attract both privacy-conscious users and crypto investors seeking secure solutions for asset management.
The market’s response has been overwhelmingly positive. Investors have poured into both spot and derivatives markets, reflecting a broader belief that this new feature could significantly increase ZEC’s utility and demand. However, not everyone is on board. Blockchain analyst ZachXBT has expressed concerns about privacy vulnerabilities, particularly the risk of traceability when using transparent refund addresses in transactions.
Technical Indicators Suggest Continued Momentum
ZEC has now registered three consecutive days of higher daily closes, establishing a solid uptrend. The altcoin is currently trading above both its short-term and long-term moving averages, indicating robust market strength. Moreover, the Stochastic Momentum Index (SMI) has made a bullish crossover, rising to 6.6. This is typically a sign of growing buyer control and potential further gains.
Volume indicators also confirm this bullish outlook. Over the past 24 hours, ZEC recorded a Buy Volume of 1.6 million compared to 1.4 million in Sell Volume, resulting in a positive Buy-Sell Delta of 200,000—clear evidence of aggressive accumulation.
Derivatives Market Mirrors Bullish Sentiment
The enthusiasm isn’t limited to spot markets. Futures traders are also betting big on ZEC’s upward trajectory. Futures Taker Cumulative Volume Delta (CVD) has remained in positive territory all week, reflecting sustained buyer pressure. Derivatives volume soared by 104.92%, reaching $9.4 billion, while Open Interest spiked 43.93% to $1.28 billion—two metrics that, when rising together, suggest heightened investor engagement and capital inflow.
In addition, the Long/Short Ratio climbed to 1.04, indicating that the majority of traders are taking long positions, anticipating further upside.
Key Levels to Watch: $750 and $875
From a technical perspective, ZEC must clear the $750 resistance level to maintain its bullish momentum. A successful breakout could pave the way for a push toward the $875 mark—a level some traders now view as increasingly realistic. On the downside, if buying pressure weakens, the altcoin could retrace to around $495, where the 18-day moving average may provide support.
This dual scenario underscores the importance of market momentum in the days ahead. Sustained demand, particularly following the Zashi wallet release, could provide the spark needed for ZEC to reach new highs.
Why $875 Isn’t Just a Fantasy
Some traders believe that the $875 target is not only realistic but potentially conservative. The last time ZEC approached such levels was during earlier crypto bull cycles where privacy coins gained significant traction. With a renewed narrative around digital privacy—especially in light of increasing regulatory scrutiny—Zcash stands out as one of the few established projects offering robust privacy features.
Moreover, if the shielded transaction feature gains traction, it could trigger a wave of adoption not just from retail investors, but also from institutions and developers seeking privacy-preserving infrastructure.
Historical Context Supports Bullish Case
Looking back, Zcash has shown the ability to post rapid price increases during periods of positive news or heightened privacy concerns. In 2021, for instance, ZEC doubled in price within weeks amid rising interest in decentralized finance and data protection. If history repeats itself, current market dynamics could serve as a springboard for a similar rally.
Competition in the Privacy Coin Space
While Zcash is leading the headlines, it’s not alone in the privacy coin arena. Coins like Monero (XMR) and Dash have long been competitors. However, Zcash’s unique dual-address system, allowing both transparent and shielded transactions, offers a flexible approach that sets it apart.
The upcoming Zashi integration further strengthens Zcash’s competitive edge by simplifying access to its privacy features. Unlike Monero, which requires more technical steps to use, ZEC’s shielded transactions may soon be available through a user-friendly interface—removing barriers for newcomers.
Regulatory Risk and Market Sentiment
Despite the optimism, traders must remain cautious. Privacy coins have historically come under regulatory scrutiny, particularly in jurisdictions with strict anti-money laundering (AML) laws. Any negative regulatory developments could dampen investor sentiment and hinder adoption.
That said, growing concerns over data privacy and surveillance could work in Zcash’s favor. As decentralized finance continues to expand, demand for privacy-preserving tools is likely to increase, potentially giving ZEC a sustained tailwind.
Retail and Institutional Interest on the Rise
Recent on-chain data shows rising wallet activity and growing interest from both individual and institutional investors. Wallet creation has increased, and exchange inflows suggest that more capital is entering the ZEC ecosystem. If this trend continues, it could further support upward price pressure in the near term.
Final Thoughts: Bullish But Cautious
Zcash’s recent rally is driven by a combination of technical strength, market enthusiasm, and the upcoming launch of a key privacy feature. While the $875 price target may seem ambitious, it is not out of reach if current trends continue.
However, traders should monitor key resistance levels, regulatory developments, and adoption metrics closely. As with any high-volatility asset, the path forward will likely include both opportunities and risks. But for now, ZEC appears to be regaining its footing as one of the leading privacy coins in the market.