Zcash price has continued its rally, but overbought signals and soaring open interest suggest its explosive surge may be nearing exhaustion.
Summary
- ZEC up 31% in 24 hours and 244% this month amid renewed privacy demand.
- Derivatives volume up 75%, open interest up 54%, indicating rising leverage.
- RSI above 73 hints at short-term exhaustion despite strong uptrend.
Zcash is trading at $171.84, up 31% in the past 24 hours. The coin has gained 40% in a week and is now 244% higher over the past month, giving it a market cap of $2.8 billion. Its price touched $179.46, the highest since 2021.
Trading activity continues to rise. Daily volume climbed 22.4% to $664.5 million, while data from CoinGlass shows derivatives volume jumped 75.7% to $1.18 billion.
A 54.4% increase in Zcash (ZEC) open interest to $227.2 million indicates that traders are placing more leveraged bets. Short-term gains may be supported by this, but if prices decline, there is a greater chance of abrupt liquidations.
Privacy narrative drives renewed demand
Zcash’s rally is part of a broader comeback for privacy-focused coins. Interest in anonymous transactions has increased as a result of growing concerns about blockchain surveillance and governmental oversight.
Leading commentators, such as Naval Ravikant, have hailed Zcash as “insurance against Bitcoin,” igniting online debates. Retail attention and trading volumes surpassed $1 billion earlier this week as a result of the more than 1,000% increase in ZEC mentions on X.
Additionally, institutional confidence is growing. Since its launch in early October, Grayscale’s Zcash Trust has amassed approximately $46 million in ZEC, providing accredited investors with a controlled means of increasing their exposure. This move has improved liquidity and reinforced ZEC’s legitimacy in the eyes of traditional finance.
The network activity of Zcash is also improving. Zashi wallet downloads on iOS have surpassed 12,000, while shielded transactions have risen 15.5% month over month. ZEC has been connected to more than 20 blockchains through cross-chain integrations such as THORSwap and Zashi CrossPay, which have handled over $9.5 million in private swaps.
Zcash price technical analysis
Although ZEC’s chart still appears bullish, there are early indications of exhaustion. Overbought signs are indicated by the commodity channel index at 109.35 and the relative strength index at 73.22.
The Williams %R at -11.09 suggests that buyers might be losing steam, but the awesome oscillator and MACD are still positive, confirming upward momentum.
The price is still above all of the major moving averages, indicating that the overall trend is still in place. The 200-day SMA at $47.17 shows how far the rally has gone, while the 10-day EMA ($139.88) and 20-day SMA ($98.83) now act as short-term support.
Although the average directional index at 60.75 shows a strong, established trend, there may be a possible cooling-off period prior to a new rally. Failure to hold $165 could result in a correction toward $150–$155, while a clear break above $180 could pave the way toward $200.
