ZEC Price Rallies as Whale Holdings Climb Amid Privacy Demand

Zcash (ZEC) has surged over 70% from December lows, consolidating near $510 with whale accumulation signaling upside. Over 1% of ZEC supply was unshielded in early 2026, sparking sell-off fears as prices dipped to $490 despite altcoin gains. Institutional interest grows with ZEC gaining 861% in 2025, driven by privacy demand and hybrid regulatory model.

Zcash (ZEC) is navigating a complex market phase as bullish whale activity clashes with unshielded supply risks near $510. The privacy coin rebounded sharply from December lows but now faces pressure from potential sell-offs, even as institutional demand strengthens its long-term case. Investors are weighing technical breakout potential against on-chain headwinds, with ZEC's price reflecting this tug-of-war. This dynamic makes understanding key drivers essential for market participants.

Why Is Zcash Eyeing a Potential $600 Breakout?

ZEC shows strong accumulation signals that could propel prices higher. Whale holdings jumped roughly 50%, with the top 100 addresses now controlling 68% of supply, tightening availability and supporting price stability. Technical analysis indicates a bull flag pattern, suggesting a breakout above $530 might target $580 to $600. ZEC trades at $535.75 with a market cap near $8.81 billion, backed by 90-day gains exceeding 261%. That momentum stems from renewed demand for privacy assets, positioning ZEC for upside if resistance levels break.

What Risks Do Unshielded Supply and Whale Moves Pose?

Recent unshielding events raise near-term downside concerns. Over 200,000 ZEC moved from shielded to transparent pools in early 2026, representing 1% of supply and often preceding exchange liquidation. A whale transferred $35.75 million worth of ZEC to Binance, heightening fears of imminent selling pressure. ZEC slid to $490 amid this activity, underperforming a broader altcoin market recovery. By contrast, shielded pool balances fell from over 5 million to 4.86 million ZEC, reflecting reduced bullish sentiment. Short positions on ZEC have climbed, signaling bearish derivative bets that could amplify losses if unshielded coins hit markets.