ZCash's (ZEC) Potential for a 25% Price Rally Amid Rising Shielded Pool Adoption

In the evolving landscape of privacy-focused cryptocurrencies, ZCash (ZEC) has emerged as a compelling case study. Over the past year, ZEC has not only outperformed Bitcoin during a bear-to-bull transition but also demonstrated robust on-chain metrics that suggest a potential 25% price rally in the near term. This analysis delves into the interplay between ZCash's shielded pool adoption, on-chain accumulation dynamics, and shifting retail/whale buying patterns to assess the asset's bullish trajectory.

Shielded Pool Adoption: A Privacy-Driven Catalyst

ZCash's shielded pool activity has surged to unprecedented levels, with daily inflows reaching a record 959 ZEC in 2025. This represents a significant shift in user behavior, as shielded transactions now account for nearly 30% of the total supply (4.864 million ZEC), according to a Coinotag report. The growing adoption of ZCash's zero-knowledge proof (zk-SNARK) technology reflects heightened demand for financial privacy amid rising regulatory scrutiny and the proliferation of central bank digital currencies (CBDCs), as noted in a Coinotag analysis.

The expansion of retail access through integrations like the Zashi wallet and Near Protocol has further accelerated adoption, as Coinotag notes. These developments have democratized participation in shielded ZEC, enabling smaller investors to engage with privacy features previously reserved for institutional actors. As a result, the shielded pool has become a de facto store of value, with inflows consistently outpacing withdrawals-a sign of long-term accumulation rather than speculative trading, the Coinotag report adds.

On-Chain Accumulation: Retail Conviction vs. Whale Profit-Taking

On-chain data reveals a nuanced shift in market dynamics. While large holders (whales) have reduced their influence, retail investors have stepped in to drive momentum. The Chaikin Money Flow (CMF) indicator for ZEC dropped from 0.45 to 0.04 in October 2025, signaling profit-taking by whales after a period of aggressive accumulation, according to Coinotag. Conversely, retail net flows flipped from +$18.14 million to –$4.06 million in a 24-hour period, indicating smaller traders are buying the dip as larger players exit, Coinotag also reported.

This transition is further supported by rising open interest in ZEC futures, which hit $244 million-a 16% increase in a single day, Coinotag noted. The surge in speculative activity, coupled with a 55.6% jump in daily trading volume to $590 million, underscores growing retail participation, according to a CryptoDaily article. Meanwhile, shielded address growth-a proxy for network utility-rose by 15% in October 2025, reinforcing the asset's appeal as a privacy-centric alternative to Bitcoin, as CryptoDaily reported.

Technical and Market Fundamentals: A Case for a 25% Rally

ZCash's technical indicators paint a bullish picture. The Relative Strength Index (RSI) currently sits at 64.89, indicating overbought conditions and the potential for a short-term correction, a trend highlighted by CryptoDaily. However, liquidity clusters above $210 and a 400% price surge in October 2025 suggest strong short-covering activity and institutional interest, points also emphasized by CryptoDaily. Analysts have cited these factors as catalysts for a potential $500 price target, with a 25% rally from the current $270 level appearing within reach, the Coinotag report suggests.

The interplay between privacy adoption and price performance is particularly noteworthy. As shielded pool inflows continue to outpace withdrawals, ZEC's narrative as a privacy-enabled asset gains traction. This is further amplified by cross-chain activity and DeFi integrations, which are expanding the use cases for ZCash beyond mere speculation, the Coinotag report adds.

Conclusion: A Privacy-First Bull Case

ZCash's confluence of on-chain accumulation, retail-driven buying, and privacy-focused adoption creates a compelling bullish case. While whale activity has cooled, retail conviction and macroeconomic tailwinds-such as concerns over financial surveillance-are propelling ZEC higher. With shielded pool inflows at record levels and open interest surging, the asset is well-positioned to test key resistance levels in the $290–$305 range, as Coinotag observed. For investors, the combination of technical strength and fundamental momentum suggests a 25% price rally is not only plausible but increasingly probable.