Zcash (ZEC) is currently experiencing a significant rally, surging over 50% in the past week to trade above $350. This surge has fueled speculation about ZEC re-entering the top 20 digital assets by market capitalization.
The rally is attributed to a combination of strong technical indicators, institutional interest, and a growing global demand for digital privacy.
Key Factors Powering the ZEC Rally:
- Record Shielded Supply: A major milestone was reached as 4.5 million ZEC (approximately 28% of the total supply) are now held in shielded addresses. This increase signals growing trust in Zcash’s core zk-SNARKs privacy technology, which allows for confidential transactions (hiding sender, receiver, and amount).
- Strong Technical Momentum:Market indicators suggest continued upside:
- Daily trading volume is soaring above $730 million.
- The RSI at 71.8 and a bullish MACD crossover point to strong buying pressure.
- The price structure is maintaining a healthy uptrend (higher highs and higher lows).
- Bullish Price Targets: Analysts see near-term resistance between $370–$400, with a potential breakout target of $450–$500. This momentum aligns with predictions from figures like Arthur Hayes, who suggested ZEC could reach $1,000.
- Institutional Exposure: Institutional confidence is evident with Grayscale's Zcash Trust surpassing $137 million in assets under management. Whispers of a potential ETF conversion could further amplify the rally.
- Privacy Narrative: Zcash's resurgence reflects a broader market rotation into privacy tokens amid heightened global surveillance and regulatory uncertainty. ZEC is seen as a crucial asset for financial confidentiality in a heavily monitored digital world.
If Zcash maintains its current trajectory, continues the growth in shielded adoption, and successfully breaks the $400 resistance level, its return as a top-tier privacy crypto is likely.
October 2025, Cryptoniteuae