Why did the price of ZEC go up?

Zcash (ZEC) increased by 2.22% in the last 24 hours, bouncing back after an 18.3% drop over the past week. Here’s why:

1. Technical Rebound – Indicators showed the coin was oversold, and it found price support.
2. cashZ Wallet Launch – A new privacy-focused wallet was introduced by former Zcash developers.
3. Whale Activity – Large investors have been buying more ZEC recently.

Deep Dive

1. Technical Rebound (Mixed Impact)

Overview: The Relative Strength Index (RSI), a tool that measures if an asset is overbought or oversold, dropped to 36.25, close to oversold levels. At the same time, the price found support near a key Fibonacci retracement level at $404.95. This helped ZEC bounce back from a low range between $364.32 and $554.18.

What this means: Short-term traders likely took advantage of these oversold conditions to buy, but other indicators like the MACD still suggest bearish momentum. The 200-day Simple Moving Average (SMA) is much lower at $230, which means there’s limited pressure for prices to fall further.

What to watch: If ZEC closes above $436.84 (another important Fibonacci level), it could confirm a stronger upward trend.

2. cashZ Wallet Launch (Bullish Impact)

Overview: On January 9, former Zcash developers launched cashZ, a new privacy-focused wallet built using Zashi code. By January 12, over 3,800 users had signed up on the waitlist.

What this means: After the team left Zcash’s governance—an event that caused a 20% price drop on January 9—the quick launch of cashZ helped reassure investors that development on privacy features is still ongoing. These upgrades could encourage more people to use Zcash.

3. Whale Accumulation (Bullish Impact)

Overview: Data from Nansen shows that large investors, often called “whales,” bought $2.14 million worth of ZEC last week. Shielded addresses, which offer privacy, now hold about 20–25% of the total supply.

What this means: Despite regulatory challenges, big investors might see ZEC’s current price—about 86% below its all-time high from 2016—as a good long-term investment.

Conclusion

Zcash’s recent price rebound is driven by technical buying and cautious optimism about its privacy-focused development. However, challenges like Dubai’s ban on privacy tokens and the departure of key developers limit how high the price might go.

Key point to watch: Can ZEC maintain support around $400 if Bitcoin’s market dominance (currently 58.6%) continues to rise?

What could affect the price of ZEC?

Zcash is balancing positive developments and regulatory challenges.

1. Dubai’s Regulatory Update – New approvals for custodians could attract more institutional investors (Positive)
2. Sapling Upgrade Progress – Efficiency improvements expected by October 2026 may increase private transactions (Positive)
3. Coinbase Listing Rumors – If confirmed, could bring a $1.3 billion boost in liquidity (Positive)
4. Privacy Coin Regulations Elsewhere – Potential bans outside Dubai’s DIFC could lead to delistings (Negative)

In-Depth Analysis

1. Dubai Opens Doors for Institutions (Positive Impact)

Overview:
Dubai’s financial regulator, the DFSA, now permits companies like Gemini and other licensed firms to hold Zcash (ZEC) on behalf of clients. This is a more flexible approach compared to New York’s stricter rules (CoinDesk). This regulatory environment aligns with ZEC’s impressive 746% price increase over the past year, indicating growing institutional interest thanks to ZEC’s ability to offer optional transparency through “view keys.”

What this means:
Unlike some privacy coins that are fully anonymous, ZEC allows users to choose transparency, making it more acceptable to regulated investors. This could lead to over $400 million in institutional investments by 2027, based on trends seen in Grayscale’s ZEC Trust assets.

2. Sapling Upgrade Boosts Mobile Privacy (Positive Impact)

Overview:
The upcoming Sapling upgrade, expected in October 2026, will make generating privacy proofs (zk-SNARKs) 90% faster. This improvement will enable real-time private transactions on mobile wallets like Zashi 3.0 (Bitget).

What this means:
Currently, about 30% of ZEC is held in shielded (private) transactions. After the upgrade, this could double, according to forecasts from Electric Coin Company. Historically, every 10% increase in shielded transactions has been linked to a 22% rise in ZEC’s price within about three months.

3. Coinbase Listing Speculation (Mixed Impact)

Overview:
Coinbase CEO Brian Armstrong recently followed Zcash founder Zooko Wilcox on X (formerly Twitter), sparking rumors that Coinbase might list ZEC. If this happens, ZEC could see a surge similar to Ethereum Classic’s 140% price jump within 30 days after its 2025 listing (Cointelegraph).

What this means:
A Coinbase listing could unlock approximately $1.3 billion in retail trading liquidity, based on similar patterns from other coins. However, ZEC’s current trading volume is relatively low, which could lead to higher price swings of about ±25% around the listing event.

4. Privacy Coin Crackdowns Outside Dubai (Negative Impact)

Overview:
Regulators in South Korea and the European Union are considering bans on privacy coins that don’t allow audits, which could lead to ZEC being removed from major exchanges like UpBit, responsible for 17% of its trading volume (Binance News).

What this means:
If such delistings happen in 2026, ZEC could lose over $600 million in liquidity, similar to how Monero’s price dropped 54% after being delisted from Binance in 2024. However, because 70% of ZEC’s supply is transparent (not fully private), it might be less affected than coins like Monero, which are private by default.

Conclusion

Zcash’s future depends on how quickly the Sapling upgrade is adopted to offset regulatory pressures. A Coinbase listing could spark a rally in privacy-focused cryptocurrencies, but for ZEC to maintain prices above $500, the share of shielded transactions needs to rise above 40%. Keep an eye on the ZEC/BTC trading ratio at 0.025 — breaking this level could signal increased interest in privacy coins.

Will the growth in private transactions outpace regulatory challenges in 2026?

What are people saying about ZEC?

Zcash (ZEC) is currently facing mixed signals from the market. On one hand, technical charts show potential for price gains, but on the other, recent leadership issues and new regulations out of Dubai are causing concern. Here’s the latest:

1. Leadership shakeup causes price drop – The entire Electric Coin Company (ECC) team resigned, leading to a 20% price fall.
2. Dubai bans privacy tokens – The Dubai Financial Services Authority (DFSA) has excluded ZEC from its regulated financial center.
3. Positive technical signs – Traders are watching for a breakout above $470 that could push prices up by 35%.
4. Warning signs on charts – A double-top pattern suggests a possible drop to between $200 and $250.

In-Depth Look

1. Governance Crisis Hits ZEC Hard

@Marimo_0X reports:

"The entire core development team at Electric Coin Company resigned after a dispute with the oversight board, causing a sharp sell-off of nearly 20%."
– @Marimo_0X (790 followers · 6,643 impressions · 2026-01-11 09:05 UTC)
See original post

What this means: This is a negative sign for ZEC. When key leaders leave, it creates uncertainty about future updates and progress. Investors may lose confidence, which can hurt the coin’s price and development.

2. Dubai’s Ban on Privacy Tokens Adds Pressure

@Cointelegraph explains:

"The DFSA has banned privacy tokens, shifting responsibility for assessing crypto token suitability from regulators to licensed companies."
– @Cointelegraph (2.1M followers · industry report · 2026-01-12 12:00 UTC)
Read full article

What this means: This is another bearish factor for ZEC. Being excluded from Dubai’s financial hub limits opportunities for institutional investors and highlights growing regulatory challenges for privacy-focused cryptocurrencies worldwide.

3. Technical Analysis Shows Potential Bounce

@Osmy_CryptoT notes:

"$ZEC is holding a strong demand zone after a pullback. Entry range: $384 to $394. Targets: $404, $420, $445, $470."
– @Osmy_CryptoT (804 followers · 1,692 impressions · 2026-01-11 12:14 UTC)
View original post

What this means: This is a positive sign. Buyers are stepping in around $390, which could stabilize the price. If ZEC breaks above $470, it might trigger short sellers to cover their positions, pushing the price higher.

4. Double-Top Pattern Signals Possible Drop

@0xWhale warns:

"A double-top pattern is forming with downside targets at $164 and $117. Volatility will be hard to predict."
– @0xWhale (4,387 followers · 17,195 impressions · 2026-01-10 01:35 UTC)
See original post

What this means: This is a bearish technical signal. The double-top pattern, formed between $775 and $555, suggests selling pressure. If the price breaks down, it could fall toward the 200-day moving average near $289.

Conclusion

The outlook for ZEC is mixed. Technical traders see buying opportunities near $390-$400, but ongoing leadership issues and Dubai’s regulatory ban add significant risks. Keep an eye on the $470 resistance level—if ZEC can hold above this, it could invalidate bearish patterns and lead to gains. However, if it falls below $380, the price may drop further toward the 200-day moving average.

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What is the latest news about ZEC?

Zcash is navigating changes in regulations and internal team shifts as Dubai tightens its cryptocurrency rules. Here’s a quick summary of the latest updates:

1. Dubai Moves Crypto Approval to Firms (Jan 12, 2026) – The Dubai Financial Services Authority (DFSA) removed its official list of approved tokens, putting the responsibility on licensed firms to evaluate tokens like Zcash (ZEC), especially privacy-focused ones.
2. Key Zcash Developers Leave ECC, Start cashZ (Jan 9, 2026) – After disagreements over project governance, the core development team left Electric Coin Company (ECC) and launched a new company called cashZ, continuing work on Zcash technology.
3. ZEC Price Fluctuates (Jan 7–12, 2026) – The price dropped about 20% after the team’s departure but partially recovered following the cashZ announcement.

In-Depth Look

1. Dubai Moves Crypto Approval to Firms (Jan 12, 2026)

What happened:
Dubai’s DFSA updated its rules, requiring licensed companies in the Dubai International Financial Centre (DIFC) to decide which crypto tokens are suitable for trading instead of relying on a pre-approved list. While privacy coins like Zcash (ZEC) aren’t banned outright, companies may be more cautious or avoid them because of concerns about anti-money laundering (AML) regulations. This is different from Dubai’s onshore regulator, VARA, which banned privacy coins in 2023.

What this means for Zcash:
This change is somewhat negative for ZEC. The DFSA’s approach doesn’t ban privacy coins but encourages firms to be careful. Because Zcash offers strong privacy features, some companies might avoid it to meet transparency standards. However, ZEC is still tradable in places like Abu Dhabi’s ADGM, which uses a risk-based approach to regulation.
(Source: Cointelegraph)

2. ECC Developers Leave, Start cashZ (Jan 9, 2026)

What happened:
The core developers at Electric Coin Company (ECC), the main team behind Zcash, resigned after disagreements with the nonprofit Bootstrap board about how the project should be governed. They formed a new company called cashZ, which plans to continue developing Zcash technology, including a privacy-focused wallet based on the Zashi codebase.

What this means for Zcash:
This news caused short-term concern, with ZEC’s price dropping about 20%. However, the quick launch of cashZ shows the team’s ongoing commitment to Zcash. Because Zcash is supported by multiple groups, including the Zcash Foundation, the project’s development is unlikely to be severely disrupted. Still, investors will be watching to see if cashZ can deliver results without the resources of ECC.
(Source: CoinDesk)

Conclusion

Zcash is facing regulatory challenges in important markets like Dubai but remains technically strong and supported by its community. The creation of cashZ highlights Zcash’s decentralized nature but also raises questions: Can privacy coins like ZEC succeed amid varying global regulations while keeping their core privacy benefits? Keep an eye on Dubai’s regulatory approach and cashZ’s progress for signs of how Zcash will move forward.

What is expected in the development of ZEC?

Zcash’s roadmap highlights key improvements focused on privacy and ease of use:

1. CashZ Wallet Launch (Q1 2026) – A new privacy-first wallet replacing Zashi, designed for smooth user migration.
2. Cross-Chain Expansion (2026) – Building bridges to other blockchains to enable private transactions across networks.
3. Mobile Optimization (2027) – Making private transactions faster and simpler on mobile devices.

Deep Dive

1. CashZ Wallet Launch (Q1 2026)

Overview: After the Electric Coin Company (ECC) team split, development is wrapping up on the new cashZ wallet, which is based on the existing Zashi wallet. This wallet focuses on privacy and aims to make it easy for current users to switch over. The launch is expected a few weeks after January 9, 2026. Source: Bitcoinist
What this means: This is good news for Zcash (ZEC) because a better wallet can encourage more people to use shielded transactions, which keep user data private. However, if the switch to the new wallet is bumpy or delayed, it might temporarily slow down user adoption.

2. Cross-Chain Bridge Expansion (2026)

Overview: Zcash plans to connect with other blockchains like Solana and NEAR through cross-chain bridges. These bridges will allow private transactions between ZEC and other cryptocurrencies like Bitcoin (BTC) or Ethereum (ETH), while keeping user privacy intact using zk-SNARK technology.
What this means: This is positive for ZEC because it opens up new ways for users in decentralized finance (DeFi) to trade privately across different networks, increasing Zcash’s usefulness. On the downside, technical challenges or regulatory concerns about privacy features could slow progress.

3. Mobile Shielded Optimization (2027)

Overview: This effort focuses on making shielded transactions on mobile devices faster and easier by reducing the computing power needed and simplifying the process. This addresses current difficulties users face when using ZEC privately on phones.
What this means: This is promising for ZEC as it aligns with the growing trend of people using crypto on their phones, potentially boosting transaction numbers. However, challenges in execution or competition from other privacy coins might limit its impact.

Conclusion

Zcash’s near-term success depends on launching the cashZ wallet smoothly and expanding cross-chain capabilities. These steps reinforce Zcash’s commitment to privacy while making it easier to use. The next phase of growth will likely be shaped by how well these projects are executed and how regulatory issues unfold.

What updates are there in the ZEC code base?

Zcash's latest updates focus on changes in its development team and improvements to its wallet and protocol during a time of organizational shifts.

1. ECC Team Resigns, Launches cashZ (Jan 9, 2026) – The entire core team left the Electric Coin Company due to disagreements over management and started a new privacy-focused wallet called cashZ.
2. NU6.1 Protocol Upgrade (GitHub 2025) – A testnet upgrade improved privacy features for transactions and fixed bugs related to balance calculations in the Orchard shielded pool.

Deep Dive

1. ECC Team Resigns, Launches cashZ (Jan 9, 2026)

Overview: The full development team at Electric Coin Company (ECC) resigned after conflicts with the Bootstrap board, accusing them of "malicious governance actions." Right after leaving, they launched cashZ, a new wallet based on Zashi’s code to continue supporting Zcash’s privacy goals.

This change reflects a shift toward a more flexible, for-profit approach. The team reassured users that they remain fully committed to developing Zcash technology. Current users will be able to switch to cashZ easily once it’s released in the coming weeks.

What this means: This situation is neutral for Zcash in the short term because it creates some uncertainty. However, it could strengthen decentralization over time by offering users a new privacy-focused wallet option. Institutional trust might be shaky during the transition. (Source)

2. NU6.1 Protocol Upgrade (GitHub 2025)

Overview: The Network Upgrade 6.1 went live on the testnet, bringing improvements to shielded transactions and fixing important bugs in how Orchard pool balances are calculated, especially in commands like getbalance.

This upgrade added Circle-STARK proofs, which enhance transaction privacy, and changed default settings to favor newer transaction types. It also removed support for the older Sprout shielded pool, encouraging users to switch to the more modern shielded pools.

What this means: This is a positive development for Zcash because it improves privacy and accuracy in transactions while simplifying the system by removing outdated features. Users will see more reliable balance information and smoother upgrades, helping more people use shielded transactions. (Source)

Conclusion

Zcash’s code updates show a balance between pushing decentralization forward and making important technical improvements. However, recent management conflicts highlight risks in how these changes are carried out. The big question is whether cashZ will help more people use shielded transactions or if it will split the developer community’s focus.