Why did the price of ZEC fall?

Zcash (ZEC) dropped 10.72% in the last 24 hours, even though it gained 23.5% over the past week and an impressive 348% in the last month. This recent decline matches a general pullback in the crypto market (which fell 0.56% overall) but also reflects ZEC-specific profit-taking and some technical risks.

1. Profit-taking after a big rally – ZEC jumped 517% in just 60 days, leading short-term traders to cash out their profits.
2. Risks from leveraged trading – There’s about $9 million in potential forced sell-offs if ZEC falls below $224, which could increase price swings.
3. Market-wide caution – Selling pressure grew after warnings from the G20 about crypto regulations and $540 million in altcoin liquidations.

Deep Dive

1. Profit-Taking After a Big Rally (Bearish Impact)

Overview: ZEC’s huge 517% gain over 60 days (as of October 16) pushed it into overbought territory, with the Relative Strength Index (RSI) hitting 76.7 on October 14 (CoinTelegraph). Technical patterns like the Wyckoff distribution and a double-top near $295 suggested the rally was losing steam, prompting traders to take profits.

What this means: Many retail investors who bought during the recent “privacy coin revival” started selling as ZEC approached $290 resistance. Data shows that shielded ZEC (private holdings) stayed steady at 27% of total supply, indicating long-term holders held on while short-term traders sold.

What to watch: If ZEC can stay above $224 (currently around $231), the price may stabilize. Falling below that could lead to a test of $172, which is the 50-day exponential moving average (EMA).

2. Volatility from Leveraged Trading (Mixed Impact)

Overview: The total open interest (amount of active futures contracts) for ZEC dropped 16% in a week to $237 million (Coinalyze), but traders with leveraged long positions still slightly outnumber shorts (long/short ratio: 1.05).

What this means: On October 15, $5.75 million worth of positions were liquidated, mostly short positions (72%). However, if ZEC falls below $224, it could trigger $9 million in forced sell-offs of long positions (Yahoo Finance). This adds to near-term price volatility.

3. Broader Market Pressures (Bearish Impact)

Overview: The overall crypto market lost $100 billion in 24 hours, driven by regulatory warnings from the G20 and ongoing U.S.-China trade tensions. ZEC’s 24-hour trading volume dropped 36% to $605 million, showing less investor interest.

What this means: Privacy coins like ZEC underperformed compared to Bitcoin (-0.8%) and Ethereum (-1.3%) as investors shifted toward safer, larger cryptocurrencies. The Altcoin Season Index fell to 30, indicating weak momentum for altcoins.

Conclusion

Zcash’s recent price drop reflects a natural cooldown after a rapid rise, made worse by risks from leveraged trading and broader market uncertainty. Key point to watch: Can ZEC hold the $224 support level amid growing fear (Crypto Fear & Greed Index at 32) and regulatory challenges? Keep an eye on growth in shielded transactions and inflows to the Grayscale ZEC Trust for signs that institutional investors might be stepping back in.

What could affect the price of ZEC?

Zcash is gaining attention with its privacy features, technology improvements, and ETF interest—but investors should be cautious.

1. Privacy Use is Growing – Shielded transactions reached a record $1.17 billion in October 2025.
2. Tech Upgrades Coming – The Sapling update improves efficiency, and a switch to Proof of Stake (PoS) is planned for 2026.
3. Regulatory Challenges – Since 2023, 45% of exchanges have removed privacy coins like Zcash.

In-Depth Look

1. Growing Privacy Demand & Tech Improvements (Positive Signs)

Summary:
Zcash’s shielded pool now holds 4.53 million ZEC, about 27% of all coins, allowing private transactions. Integration with THORSwap lets users swap coins privately across different blockchains. The Sapling upgrade in October 2025 cut the size of privacy proofs by 78%, making transactions faster and cheaper. The planned move to PoS in 2026 aims to reduce energy use by 94%.

What this means:
These improvements could encourage more institutional investors to use Zcash. For example, the Grayscale Zcash Trust saw its assets grow 18% last month to $92 million. However, since 61% of ZEC is still held in transparent (non-private) addresses, the full privacy benefits aren’t yet realized.

2. Regulatory and Market Competition (Potential Risks)

Summary:
The European Union’s new crypto rules (MiCA 3.0) will require virtual asset service providers (VASPs) to monitor shielded transactions by mid-2026. Meanwhile, Monero, another privacy coin, has seen a 140% increase in atomic swaps with Bitcoin this year.

What this means:
These regulations could increase costs for exchanges, leading 23 out of the top 50 platforms to limit ZEC deposits. Also, Zcash’s low correlation with Bitcoin (0.02 as of October 2025) means it behaves more independently, which can increase risk for investors.

3. Market Trends and Sentiment (Mixed Signals)

Summary:
ZEC’s price volatility over 30 days jumped to 89%, compared to Bitcoin’s 54%. There’s $21 million in leveraged long positions that could be at risk if the price falls below $224. Recently, the 50-day moving average ($149.66) crossed above the 200-day moving average ($64.96), which is often seen as a bullish sign.

What this means:
Technically, Zcash could rise to $338, but some indicators warn the price might be overextended. Interest from retail investors is growing, with Google searches for “Zcash” up 620% since September.

Conclusion

Zcash’s success depends on turning its privacy technology into widespread use while managing regulatory challenges. Breaking above $290 could confirm a long-term trend reversal, but watch the $224 support level closely—dropping below it could trigger $9 million in liquidations. The key question remains: Will shielded transactions stay above 30% of total supply through the end of the year?

CoinGecko | Grayscale

What are people saying about ZEC?

Zcash is gaining attention thanks to growing interest in privacy and rising prices, but opinions vary. Here’s the latest:

1. “ZEC is undervalued and revolutionary” – Some enthusiasts predict prices as high as $5 million per coin.
2. “Shielded transactions reach $1.12 billion” – Privacy use is increasing, with 27% of ZEC transactions now untraceable.
3. “Caution on leveraged trades” – Experts warn that prices falling below $224 could trigger large forced sell-offs.

In-Depth Look

1. @ThorTorrens: “ZEC to $5M? This is just the start” Bullish

“The true price of Zcash should be $5,301,240 per coin... It hasn’t even hit $1,000 yet.”
– @ThorTorrens (9.2K followers · 1.2M impressions · 2025-10-09 19:48 UTC)
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What this means: This very optimistic view reflects strong retail excitement, fueled by ZEC’s 523% price increase over the past 60 days. While such a price is unlikely soon, it shows growing interest in Zcash as a form of “privacy insurance.”

2. @criptofacil: “Shielded ZEC hits 3-year high” Bullish

“Shielded Zcash supply passed 4.42 million ZEC (27% of total), worth $1.12 billion as of Oct 13.”
– @criptofacil (22K followers · 850K impressions · 2025-10-08 21:12 UTC)
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What this means: More users are choosing shielded (private) transactions, which grew 15% month-over-month. This trend supports ZEC’s main feature—privacy. The increase in the Orchard Pool suggests big investors are accumulating, which is a positive sign.

3. @LazybearOFC: “$300–$400 possible, but mind the leverage” Mixed

“Bybit’s ZEC/USDT pair has $21.5 million in long liquidations versus $3.4 million in shorts below $178.”
– @LazybearOFC (14K followers · 320K impressions · 2025-10-08 16:40 UTC)
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What this means: Technical indicators suggest potential price gains (like an ascending triangle and golden cross), but many traders are heavily leveraged on long positions. A 10% price drop could trigger over $18 million in forced sell-offs, which might accelerate downward pressure.

Conclusion

The overall outlook on Zcash is optimistic but cautious. Privacy advocates see it as undervalued for the long term, while traders are wary of risks from crowded leveraged positions. Keep an eye on the $224–$251 support range: holding this zone could lead to rallies above $300, but breaking below it might cause sharp sell-offs. Regardless, growth in shielded transactions remains a key indicator to watch.

What is the latest news about ZEC?

Zcash (ZEC) is riding a wave of interest in privacy-focused cryptocurrencies, reaching its highest price in years after a massive 523% increase this quarter. However, some technical indicators suggest caution ahead. Here’s the latest update:

1. Privacy Coins Rally Despite Market Drop (October 16, 2025) – ZEC jumped 66% after a $20 billion market sell-off, boosted by investor Naval Ravikant calling it “Bitcoin insurance.”
2. ZEC Breaks Away From Bitcoin’s Price Moves (October 15, 2025) – The link between ZEC and Bitcoin prices has dropped to almost zero, showing ZEC is moving independently as it nears $290 resistance.
3. Technical Analysis Signals Possible Pullback (October 15, 2025) – Experts warn ZEC might face a 70% price correction despite strong demand, based on overbought indicators and market patterns.

In-Depth Look

1. Privacy Coins Rally Despite Market Drop (October 16, 2025)

What happened: Zcash’s price rose 66% from $148 to $246 since October 9, even though the overall crypto market saw a $540 million loss in altcoin investments. The privacy coin sector has grown 36.7% since October 1, helped by Naval Ravikant’s endorsement of ZEC as a kind of “insurance” against Bitcoin risks (Cointelegraph).

Why it matters: This shows strong demand for privacy-focused cryptocurrencies amid increasing government regulations and concerns about central bank digital currencies (CBDCs). However, with ZEC up 350% this year, there are questions about whether this growth can last, especially if Bitcoin continues to dominate the market (currently 58.6%).

2. ZEC Breaks Away From Bitcoin’s Price Moves (October 15, 2025)

What happened: ZEC’s price surged 109% in October, causing its price movements to become almost completely independent from Bitcoin, with a correlation near zero (0.02). Analysts warn that if ZEC falls below $224, $9 million in liquidations could occur, but breaking above $290 might push prices toward $338 (Yahoo Finance).

Why it matters: This independence means ZEC’s price is now driven more by factors specific to privacy coins, like the growing number of shielded transactions (currently 4.53 million ZEC). But it also means ZEC could be more volatile if overall market sentiment worsens.

3. Technical Analysis Signals Possible Pullback (October 15, 2025)

What happened: Despite a 680% price increase since September, technical analysis using Wyckoff Theory suggests ZEC might be entering a “distribution” phase, where prices could fall. The Relative Strength Index (RSI) is very high at 83, indicating the coin is overbought. If the $224 support level breaks, prices could drop to $125 (Crypto.News).

Why it matters: This points to short-term risks, especially for traders with leveraged positions totaling $237 million, who could face forced sell-offs. On the other hand, institutional interest remains strong, with Grayscale’s ZEC Trust holding $92 million in assets, which might help stabilize the price.

Conclusion

Zcash’s focus on privacy and recent price gains have pushed it to a four-year high. However, technical signals and uncertain market conditions suggest investors should be cautious. While ZEC’s price is now less tied to Bitcoin, its future depends on whether it can maintain momentum, especially as Bitcoin continues to dominate the market. Keep an eye on the $224 support level and trends in shielded transactions for signs of what’s next.

What is expected in the development of ZEC?

Zcash is moving forward with some important updates:

1. Zebra Node Migration (November 2025) – Switching to a new Rust-based system to make the network faster and easier to maintain.
2. Third Halving (November 2025) – Mining rewards will be cut in half to 1.5625 ZEC per block, reducing how many new coins are created.
3. Shielded Transaction Upgrades (Q4 2025) – Improving privacy features and making it easier to use Zcash across different blockchain platforms.

Deep Dive

1. Zebra Node Migration (November 2025)

Overview: Zcash plans to replace its old software (called “zcashd,” written in C++) with a new program called Zebra, built using the Rust programming language. Rust is known for being fast and reliable. This change aims to make the network stronger and easier for developers to work with (Electric Coin Company).
What this means: This is good news for ZEC because updating the technology can attract more developers and reduce problems caused by outdated code. However, delays in this transition could slow down progress.

2. Third Halving (November 2025)

Overview: The third halving will cut the rewards miners get for adding new blocks to the blockchain by half, down to 1.5625 ZEC per block. This is similar to what Bitcoin does to control supply. In the past, halvings have often led to price increases (for example, ZEC’s price rose 170% after the 2020 halving).
What this means: This is a neutral event for ZEC. While fewer new coins might make ZEC more scarce, its smaller market compared to Bitcoin means the price impact isn’t guaranteed.

3. Shielded Transaction Upgrades (Q4 2025)

Overview: Zcash is working on improving its shielded transactions, which use a technology called zk-SNARKs to keep transactions private. These upgrades will make it easier to use Zcash on mobile wallets and allow it to work better with other blockchains. Partnerships like the one with THORSwap aim to expand ZEC’s use in privacy-focused decentralized finance (DeFi) (Zcash Privacy 2025).
What this means: This is positive for ZEC because better privacy features could attract more users. However, regulators are paying close attention to privacy tools, which could create challenges.

Conclusion

Zcash’s roadmap focuses on updating its technology, managing coin supply, and enhancing privacy—key factors for standing out in a crypto world where privacy is increasingly important. With the Zebra migration and halving coming soon, the big question is whether ZEC’s strong privacy focus can overcome regulatory pressures and liquidity issues.

What updates are there in the ZEC code base?

In 2025, Zcash made important updates to improve network stability, enhance privacy features, and move to new technology infrastructure.

1. NU6.1 Testnet Activation (August 1, 2025) – Started testing fixes for wallet balance issues related to Orchard transactions.
2. Zcashd Deprecation Plan (July 2025) – Planning to phase out the old Zcashd software in favor of Zebra nodes and Zallet wallets by the end of the year.
3. NymVPN Integration (July 13, 2025) – Enabled private Zcash (ZEC) payments for VPN subscriptions using shielded transactions.

Deep Dive

1. NU6.1 Testnet Activation (August 1, 2025)

What happened: This update prepared the network for Upgrade 6.1 by fixing errors in how wallet balances were calculated for certain types of transactions called Orchard unshielded transactions. It also improved the accuracy of fee reporting in wallet commands like getbalance and gettransaction. Users need to update their software to version 6.3.0 or higher before the upgrade goes live on the main network in November 2025.
Why it matters: Fixing these wallet issues builds more trust in Zcash’s shielded transactions, which protect user privacy. This is a positive development for ZEC. (Source)

2. Zcashd Deprecation Plan (July 2025)

What happened: The older Zcashd node software is being retired and replaced by Zebra, a newer node written in Rust, and Zallet, a new wallet application. Some older commands like createrawtransaction are being removed, and users must acknowledge these changes in their configuration files. A detailed guide helps users switch over from more than 40 old commands to new ones.
Why it matters: This update modernizes Zcash’s infrastructure, improving scalability and performance. However, the transition might cause short-term challenges for node operators. Overall, this is neutral for ZEC’s value. (Source)

3. NymVPN Integration (July 13, 2025)

What happened: Zcash partnered with Nym to allow users to pay for VPN subscriptions privately using shielded ZEC transactions. This uses advanced privacy protocols (zk-NYM and Coconut) to keep payments and user identities hidden. Users pay with ZEC, receive VPN credentials, and can connect without revealing their IP addresses or wallet activity. Integration with light wallets like Zashi is in progress.
Why it matters: This expands Zcash’s real-world privacy applications by combining financial privacy with anonymous internet access. It’s a strong positive for ZEC’s adoption. (Source)

Conclusion

Zcash’s 2025 updates focus on improving privacy features (through NymVPN), modernizing infrastructure (with Zebra and Zallet), and enhancing network reliability (via NU6.1). With shielded transactions now enabling private VPN access and the node software evolving, ZEC is strengthening its role as a privacy-focused digital currency. The big question is whether adoption will speed up after the full transition away from zcashd.