Privacy-focused cryptocurrency Zcash (ZEC) has broken through a critical technical barrier, trading above $40 for the first time since February 2025. This development comes as analysts identify growing institutional interest in privacy coins and improved on-chain metrics for the decade-old blockchain project.
The $40 resistance level had contained ZEC’s price action for 14 weeks before Thursday’s breakout, with the cryptocurrency now trading at $43.14 according to CoinCodex data. This technical milestone coincides with a 21% increase in network transaction volume compared to last month.
Zcash’s Technical Breakout and Market Implications
Market technicians highlight that ZEC’s weekly close above its 200-day moving average ($39.54) confirms the bullish pattern. The relative strength index (RSI) now stands at 69.62 – approaching overbought territory but still leaving room for upward momentum.
Key technical levels to watch include:
- Immediate support: $39.50 (200-day SMA)
- Next resistance: $47.80 (January 2025 high)
- Projected medium-term target: $54.32 (CoinCodex upper bound)
Analyst Price Predictions: Short-Term Volatility vs. Long-Term Growth
While the current technical picture appears bullish, analysts warn of potential short-term corrections. CoinCodex predicts a 20% pullback to $33.74 by June 9, citing historical volatility patterns. However, their 70-day forecast suggests a 26.72% ROI potential for short-sellers who re-enter at lower levels.
Long-term projections remain optimistic across multiple platforms:
| Source | 2025 Target | 2030 Target |
|---|---|---|
| DigitalCoinPrice | $325.14 | $808.84 |
| Botsfolio | $82.41 | $72.25 |
| Binance | $54.32 | N/A |
Investor Sentiment and Strategic Opportunities in Privacy Coins
The Fear & Greed Index currently shows 70 (Greed), reflecting renewed interest in altcoins. Institutional players appear particularly drawn to privacy-focused cryptocurrencies amid growing regulatory scrutiny of transparent blockchain transactions.
Notable developments driving ZEC’s momentum include:
- Upcoming Halo 2 network upgrade (Q3 2025)
- Integration with three major DeFi platforms
- Increased shielded transaction volume (+37% MoM)
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Market Impact: Zcash’s breakout could signal a broader rally in privacy coins, with Monero and Dash both showing increased trading volume. However, regulators continue monitoring these assets closely – the SEC recently added privacy protocols to its 2026 regulatory roadmap. Investors should weigh ZEC’s technical potential against evolving compliance requirements in different jurisdictions.
