ZEC Slides 60% as Treasury Buying Pauses and Unrealized Losses Mount

Zcash (ZEC) has fallen approximately 60% from its November 2025 high of $700, trading near $245 as of February 2026 according to Defiant.io.

Cypherpunk Technologies, a Winklevoss-backed Zcash treasury company, has paused accumulation and is currently holding 290,062.67 ZEC (1.76% of total supply), with an unrealized loss of $25.73 million based on a $334 average purchase price as RootData reports.

Zcash’s price decline has erased much of the Q4 2025 rally, though it still trades about 400% higher than its pre-rally levels in September 2025 according to Bitget.

ZEC’s recent performance has raised concerns among investors and analysts, with key support levels identified at $186 and $134 if the bearish trend continues as AInvest notes. The token’s technical indicators show mixed signals, with the RSI rising but the MACD still below the signal line, suggesting lingering bearish sentiment.

The ZEC price has experienced a 22.38% drop over the last week, trading near $230.63 as bears test the $200–$220 support zone. A sustained close above $300–$420 is seen as critical for bullish momentum.

Cypherpunk has not disclosed any new purchases since December 30, 2025, and its holdings have remained unchanged. The firm aims to build a position equal to 5% of the token’s supply but has paused accumulation after reaching 1.76% as FXStreet reports. This pause contrasts with continued treasury buying by Bitcoin and Ethereum-focused firms, despite their own significant unrealized losses.

Despite the bearish trend, Zcash has gained 16.7% in the last seven days, outperforming most other major crypto assets. The growth in Zcash’s shielded supply, which has increased to 4.3 million ZEC, is viewed as a positive sign for privacy usage.

What Is Driving Zcash's Current Price Action?

Zcash’s sharp decline has been attributed to broader market sell-offs and reduced confidence in derivatives markets. Open Interest in ZEC futures has dropped significantly from its December peak of $1.13 billion to $335 million as of February 2026, indicating reduced conviction among traders. This decline has been accompanied by reduced liquidation pressure, with only $3.2 million in longs and $2.4 million in shorts liquidated on one recent trading day according to AInvest.

The ZEC price has seen some short-term rebounds, trading above $240 after falling from $185. Analysts are watching the 200-day EMA at $302 as a critical level for trend stability. A sustained move above this level would be necessary for bullish momentum.

What Are the Key Technical and Market Indicators to Watch?

Technical indicators for Zcash are mixed. The RSI on the daily chart is rising to 32, suggesting bearish momentum is fading. However, the MACD remains below the signal line, signaling an ongoing bearish bias. The area between $230 and $240 is seen as crucial for absorbing selling pressure.

Zcash’s shielded pool still holds over 5 million ZEC, indicating ongoing confidence in its privacy features despite the price decline. This could provide narrative strength if the broader market stabilizes.

Analysts are closely watching for signs of a potential rebound, with key levels including the $200–$220 support zone and the 200-day EMA at $302. A break below $200 could expose the $120 region as a new area of demand.

What Is the Long-Term Outlook for Zcash?

Zcash’s long-term prospects remain tied to its unique privacy features and potential adoption in AI and blockchain integration scenarios. Ethereum founder Vitalik Buterin’s recent support for privacy tech, including a donation to Shielded Labs, may provide narrative strength despite the price downturn.

Zcash’s integration with the Zashi wallet and NEAR Intents has improved usability, making it easier for users to swap assets across multiple blockchains directly into ZEC. This could enhance ZEC’s utility and adoption in the long run.

However, ongoing volatility and market uncertainty remain risks. The broader crypto market continues to face challenges, with major DAOs like Michael Saylor’s firm and Tom Lee’s BitMine still actively buying despite substantial unrealized losses. Zcash’s future trajectory will depend on its ability to maintain relevance in a rapidly evolving market and attract institutional and retail participation.