Why is Zcash Surging? Analysts Break Down the ZEC Rally and What Comes Next

Why is Zcash Surging? Analysts Break Down the ZEC Rally and What Comes Next

Zcash (ZEC) is back in the spotlight after a dramatic rebound. Following Monday’s steep fall to roughly $548, the privacy coin has bounced sharply, gaining 12% in the last 24 hours and reclaiming the $670 level.

After surging more than 1,500% year-to-date and rallying 175% in the past month, the privacy-focused cryptocurrency is now testing a major bullish breakout pattern, leaving traders wondering what comes next and whether ZEC can truly sustain this momentum.

Zcash ZEC ZECUSD

Institutional Accumulation Fuels a Powerful Upswing

A major catalyst behind Zcash’s meteoric rise has been aggressive accumulation from high-profile institutional players.

The newly rebranded Cypherpunk Technologies, backed by Tyler and Cameron Winklevoss, has snapped up 233,644 ZEC, worth roughly $150 million. This stash now represents around 1.25% of the circulating supply, with the firm openly declaring plans to raise its holdings to at least 5%.

This level of concentration has tightened liquid supply and injected strong confidence across the market. Supporting the trend, long-time privacy advocate Arthur Hayes has openly backed ZEC, predicting a run to $1,000 and even suggesting Zcash could eventually reach 20% of Bitcoin’s value.

The upcoming November 2025 halving has added another bullish layer. With block rewards set to fall by 50%, ZEC will enter a sharply reduced-issuance environment, historically a strong driver of scarcity-led rallies across major cryptocurrencies.

Technical Indicators Signal a Potential Zcash (ZEC) Breakout

On the technical front, Zcash is close to confirming a classic inverse head and shoulders formation on the 4-hour chart. The neckline sits around $690, and a decisive breakout above this level could open a path toward $956, a nearly 40% upside from recent prices.

ZEC is also trading above its 50-day EMA at $613, while a green Supertrend signal hints at sustained bullish momentum. Still, analysts caution that ZEC must hold above the EMA to avoid invalidating the formation. Key support remains at $600–$605, where momentum has recently cooled.

Coordinated Influence and Growing Privacy Demand

Beyond charts and supply mechanics, market observers say a coordinated narrative push is also at play. Crypto media figure Ran Neuner believes influential industry players are rallying behind Zcash to spotlight privacy as a critical next frontier.

According to him, this is less a pump-and-dump and more a long-term mission around compliant, user-controlled privacy, a feature that differentiates ZEC from rivals like Monero.

If ZEC can maintain its breakout structure and demand for privacy-focused assets continues to rise, Zcash may be positioning itself not just for a short-term spike, but for a serious challenge to broader market rankings in the months ahead.

Cover image from ChatGPT, ZECUSD chart from Tradingview

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