Zcash News Today: ZEC Hits 7-Year High Amid $18.8M Liquidations, But Derivatives Signal Fragility

The total liquidation of ZEC perpetual futures contracts across all platforms in the past 24 hours has reached $18.8 million, according to Coinglass data from Lookonchain data. This figure, the second-highest after Bitcoin, Ethereum, and Cardano, reflects heightened volatility in the privacy-focused cryptocurrency. A single short position on Hyperliquid, initiated on October 11, now faces a $14.5 million unrealized loss as ZEC surged to $586, reported by Lookonchain, underscoring the risks of leveraged trading in a rapidly shifting market.

Zcash (ZEC) has simultaneously defied broader crypto market weakness, hitting a seven-year high of $586 and surpassing $500 for the first time since 2018, according to Coindesk. The token's price rally has been driven by a combination of institutional interest and growing adoption of its shielded pool, where over 5 million ZEC—valued at $2 billion—are now held, according to Yahoo Finance. This represents 30.41% of Zcash's circulating supply, signaling strong conviction among long-term holders who prioritize privacy and reduced sell pressure.

The surge in ZEC's price has also intensified derivative trading activity. Open interest in ZEC futures contracts has climbed to $713 million, a 25% increase in a day, per Lookonchain data, while the spot-to-futures ratio remains skewed toward futures volume. Traders are increasingly hedging downside risks, with deeply negative funding rates indicating a short-position bias, as noted by Coindesk. Meanwhile, Zeta Global's recent Q3 earnings report—showing 26% revenue growth—highlights broader market optimism about crypto infrastructure, even as its stock dipped 5.22% post-earnings, according to Investing.com.

Market analysts point to Zcash's technical resilience as a key factor. ZEC's price has surged 48.74% weekly, with a whale securing $2.7 million in unrealized gains through a 32,000 ZEC long position, noted by TronWeekly. However, derivatives data warns of fragility: $30.27 million in long liquidations on Binance alone could trigger a correction if the price dips below $450, according to Yahoo Finance. A bearish divergence in the RSI further suggests momentum may stall, despite strong spot wallet inflows and Chaikin Money Flow indicators supporting bullish sentiment (analysis reported by Yahoo Finance).

The Federal Reserve's cautious stance on rate cuts adds macroeconomic uncertainty. Governor Philip Jefferson described current rates as "somewhat restrictive," hinting at a slower path to neutrality, according to TradingView, which could pressure risk assets like crypto. This comes as Binance CEO Richard Teng faces scrutiny over the exchange's listing of a Trump-backed stablecoin, USD1, amid claims of preferential treatment, reported by Crypto Economy. While Teng denied any undue influence, the controversy underscores regulatory challenges in a sector where political connections often intersect with market dynamics.

Zcash's next major price target is $594, with analysts noting a potential test of buyers' resolve if the token fails to break above $438, according to Yahoo Finance. For now, the cryptocurrency's shielded adoption and institutional buying interest suggest a resilient narrative, even as leveraged traders brace for potential volatility.