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

[Ben Graham]

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.

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