Zcash Price Pulls Back Sharply, Analysts Eye Potential Crash After Parabolic 1,500% Rally

Overview

Zcash has recently entered a correction phase following a substantial rally of 1,500%, which brought its price to a seven-year high. As the price has fallen over 25% from this peak, analysts are evaluating whether this upward trend has come to an end.

Price Correction and Market Sentiment

ZEC’s rapid ascent began in early September, breaking through significant resistance at $400. However, the current market sentiment is shifting as traders express concerns about the sustainability of this rally. Analysts have noted that ZEC may have reached its cyclical top, with some traders warning of a potential sharp decline.

A popular trader has indicated that steep and prolonged rallies often conclude with significant corrections. Technical analysis reveals that ZEC’s Relative Strength Index (RSI) recently hit an extreme overbought level, reminiscent of the peaks observed during the 2017–2018 market boom. As a result, ZEC has started to record notable losses on the daily chart.

Analysts’ Predictions

Market observers anticipate a deeper correction in the coming weeks, with some traders highlighting that this rally is the longest in Zcash’s history. Previous cycles have ended with drawdowns between 45% and 90%. The daily chart suggests that ZEC is currently trapped within a corrective channel, indicating further downside unless strong support emerges around the $400 mark.

Not all analysts share a bearish outlook. One technical analyst pointed out that despite the overbought conditions, ZEC’s MACD and RSI indicators show no signs of bearish divergence. This indicates that the ongoing pullback could be a temporary correction rather than the start of a prolonged downtrend. If the bulls can maintain the $400 support level, ZEC might stabilize and potentially resume its broader bullish trend.

Long-Term Perspectives

Adding complexity to the current market dynamics, BitMEX co-founder has reiterated a bullish perspective on Zcash, suggesting that renewed fiscal stimulus in the U.S. could benefit both Bitcoin and Zcash. With increasing government liquidity, privacy coins like Zcash may gain traction as investors look for decentralized and censorship-resistant assets.

Despite the short-term volatility, long-term holders remain optimistic about Zcash’s future. The coin’s advanced zk-SNARKs technology positions it as a leader in privacy innovation, and should fiscal easing lead to another liquidity wave, ZEC could see a significant recovery.

Impact on the Crypto Market

• Zcash’s price correction has raised concerns about the sustainability of its recent rally.
• The significant drawdown from the all-time high may influence trader sentiment across the crypto market.
• Analysts are divided, with some predicting further declines while others see potential for recovery.
• The ongoing volatility highlights the risks associated with rapid price movements in cryptocurrencies.
• Long-term confidence in Zcash’s technology remains strong, suggesting potential for future growth if market conditions improve.

Updated: 11/11/2025, 7:00:35 PM