Zcash (ZEC) has fallen nearly 30% from its November peak near $750, raising concerns among traders and treasuries about how deep this correction could still go. The pullback mixes overheated technicals, heavy leverage, and ongoing debates around privacy adoption, regulation, and institutional demand — factors that will likely define ZEC’s next major move.
Key Levels and Market Pressures
The final surge put ZEC into what analysts described as a “parabolic breakout”, with gains of roughly 125% in November and 700%–1,500% since September before reversing. Traders noted that RSI touched 78, signaling overheated conditions, while open interest hit a record $1.13B, creating a fragile setup where any downturn can trigger forced liquidations.
The Zcash pump started about 2 months ago, which triggered my curiosity.
Financial privacy is extremely important. I bought into the Zcash narrative, and took a second look at the network. The last time I researched it was 2016/2017.
I can to 2 conclusions:
1) Litecoin has…— Steven McClurg (@stevenmcclurg) November 23, 2025
Analysts studying prior patterns warn that ZEC may still face a 50%–60% decline, especially if it loses key supports. Levels at $575–$580 are critical, while deeper corrections could drag the price toward $150–$185. If these breaks occur, deleveraging could accelerate, pressuring already-crowded positions.
At its core, Zcash is built around privacy enabled by zk-SNARKs, allowing transactions to be validated without exposing senders, receivers, or amounts. Adoption data shows real traction: between 2020 and 2025, 20%–30% of supply participates in shielded transactions, and the Orchard pool now holds over 4.1M ZEC. In September 2025 alone, protected transactions grew 15.5%, reaching 3.06M ZEC, reinforcing genuine demand for anonymity.
Institutional behavior has also shaped this cycle. A major fund accumulated ZEC, the Grayscale Zcash Trust remains active, and an institutional player reportedly executed a $50M buy strategy, signaling corporate interest. Still, regulatory scrutiny on privacy coins persists, and 2026 could bring tighter rules, delistings, or access limitations.
“Privacy is not a feature; it is the foundation of freedom in crypto,” a public advocate noted — a sentiment widely shared in the Zcash community.
The landscape suggests that further short-to-medium-term downside is likely due to technical pressures and leverage, while growing shielded adoption and institutional accumulation could provide the groundwork for a more durable recovery later on.