Zcash News Today: Zcash's $500 Rebound: Buying Opportunity or Precipice of Collapse?

Zcash (ZEC) Price Faces Pressure Amid Analyst Warnings of Sharp Correction

By Bloomberg News

Zcash (ZEC) has experienced a dramatic price correction following a meteoric 1,500% surge in two months, sparking debate among analysts about whether the privacy-focused cryptocurrency can sustain its gains or will crash back below $100. The token, which reached a seven-year high of $750 in early November 2025, has since fallen more than 25% to $484 as of late November, with technical indicators and market sentiment signaling heightened volatility, according to a Cryptotimes report.

The recent pullback has been attributed to overbought conditions and structural imbalances in the market. ZEC's weekly relative strength index (RSI) hit 94.24, its highest level on record, according to TradingView data, a Coinglass report. Historically, such overbought readings have preceded sharp corrections, with Zcash often experiencing declines of 45% to 90% after extended periods above the 70 RSI threshold. The current rally has also seen ZEC's price remain above the 50-period exponential moving average (EMA) at $533, a key support level that traders are closely watching, the Cryptotimes report notes.

Crypto analyst Crypto Patel has warned that the price could revisit the $40–$100 range, citing an unfilled "fair value gap" (FVG) on the chart—a technical pattern that often acts as a magnet for price retracements, as a Captain Altcoin article notes. He emphasized that the recent breakout from a two-year accumulation zone could trigger profit-taking, particularly once ZEC crosses above $500. "Smart money may begin to take profits in this range, leading to a healthy correction before a sustainable uptrend resumes," Patel noted in that article.

Derivatives markets have reflected growing uncertainty. Coinglass data shows ZEC derivatives volume surged 51.65% to $8.92 billion in the past 24 hours, while open interest contracted 22.41% to $879.36 million. The long/short ratio stood at 0.97, indicating a near-even balance between bullish and bearish positions, the Cryptotimes report notes. However, leveraged traders were caught off guard by the volatility, with $31.23 million in long positions liquidated. Binance users showed a slight preference for short positions, while OKX traders leaned toward longs, the Cryptotimes report notes.

Arthur Hayes, co-founder of BitMEX, remains bullish despite the correction, predicting ZEC could reach $1,000 in 2025 and $10,000 in the long term. His optimism contrasts with more cautious analysts like Altcoin Sherpa, who labeled the current rally a "great short" with a potential "violent end" if the price fails to hold above key support levels, a Coinglass report notes.

Market participants are divided on whether the correction is a buying opportunity or a warning sign. Eric Van Tassel, a technical analyst on X, argued that ZEC's decline remains bullish as long as it stays above the lower trend line in its descending channel. "Zcash can fall to the trend line and still be in a higher low within the overall uptrend," he said, the Cryptotimes report notes.

Meanwhile, whale activity suggests mixed signals. On-chain data from Lookonchain revealed that a major whale, who previously profited $36 million from PEPE, has accumulated 8.41 million ASTER tokens, indicating continued confidence in speculative assets. However, ZEC's broader market context remains uncertain, with some investors shifting focus to alternative projects like ASTER and Ethereum derivatives.

Zcash's path forward hinges on its ability to retest and hold above critical support levels. If the price breaks below the 20-week EMA of $230—a 62% drop from current levels—analysts warn of a potential return to the $100 range, as highlighted by Patel in the Captain Altcoin article. Conversely, a successful rebound above $500 could reignite bullish momentum, aligning with Hayes' $1,000 target.

For now, traders are advised to monitor both technical indicators and macroeconomic factors, including broader crypto market sentiment and regulatory developments. As ZEC navigates this inflection point, the coming weeks will be critical in determining whether the privacy coin can stabilize its gains or face a deeper correction.