Zcash price has surpassed the $500 psychological barrier for the first time since January 2018, after rallying nearly 250% over the past month as privacy coins continue to attract investor demand.
Summary
- Zcash price has surged by over 250% in the past month.
- Shielded ZEC tokens now account for 30% of the total Zcash supply.
- Technicals suggest a possible pullback in its price before the next leg higher.
According to data from crypto.news, Zcash (ZEC) has skyrocketed past $500 last check Oct. 6 afternoon Asian time, after soaring nearly 20% over the past 24 hours. Trading at $509.56 when writing, the privacy coin is up 255% over the past month, and an impressive 1,600% from its year-to-date low.
The ongoing rally occurred in a high-volume environment. As per data from CoinGecko, trading volume has climbed from $560 million seen at the beginning of October to over $1.75 billion. Soaring trading volume is a sign of robust demand from traders.
Meanwhile, its market cap has increased fourfold over the same period, now sitting at $8.3 billion and ranking the token as the 26th-largest cryptocurrency by market capitalization, surpassing other major players like Sui (SUI) and Hedera (HBAR).
Zcash’s rally today comes amid a renewed wave of investor interest in privacy-centric cryptocurrencies.
Rising surveillance concerns and mounting regulatory pressure on transparent blockchains like Bitcoin have driven some investors toward privacy‑focused alternatives such as Zcash, which leverages zero‑knowledge proof technology and has emerged as a standout beneficiary. Peer tokens like Dash (DASH), Railgun (RAIL), and Horizen (ZEN) have also benefited from the renewed focus on privacy over the past month, posting gains between 100% and 200%.
Analysts from Galaxy Digital and influential investor and entrepreneur Naval Ravikant have recently referred to Zcash as the “spiritual successor” and “insurance against Bitcoin,” respectively.
At the same time, well-followed market analyst and former BitMEX CEO, Arthur Hayes, expects ZEC to rally as high as $1k. See below:
Their comments appear to have drawn renewed attention to the token from retail and institutional investors alike.
The token’s gains have also been supported by strengthening fundamentals within the Zcash network. According to the Zcash Dashboard, the total value of shielded ZEC has climbed to a record 4.96 million tokens, worth over $2.56 billion. Shielded ZEC tokens now account for over 30% of the supply.
A higher shielded amount indicates that more people are using Zcash’s privacy features, which in turn suggests increased user adoption. It also removes tokens from liquid circulation, further reducing sell-side pressure.
Zcash price analysis
On the daily chart, Zcash continues to follow a strong upward trend and has traded above an ascending trendline that has acted as dynamic support throughout its ongoing run.
After rallying for several weeks, the token experienced a healthy pullback and briefly retested the trendline before bouncing strongly. Such behaviour is typical during periods of consolidation within a broader uptrend.
Therefore, as long as ZEC holds above this ascending trendline, its bullish structure is likely to remain intact, and the token could target a move toward $600 or even higher in the coming weeks.
Momentum indicators seem to support the bullish outlook. The MACD lines have moved further apart while pointing above and trending above the zero line, indicating bulls still have a strong hold of the market. Meanwhile, the RSI currently sits at 84, well above the overbought threshold of 70.
Given these conditions, ZEC may undergo a short-term correction or consolidation before its next leg higher.
As previously noted by analysts at crypto.news, a rising open interest combined with a negative funding rate and elevated RSI levels could point to temporary overheating in the market, increasing the chances of a cooldown before it resumes its rally.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
