Zcash (ZEC) logged a sharp rise with aggressive upside targets and mounting pullback risks. In 24 hours it rose 17% and accumulates 178% in the last month, placing the next technical target at $594 while the probability of a correction grows for traders, custodians and compliance teams. The dynamics combine strong interest in privacy with elevated leverage that could amplify liquidations.
The rally unfolds within a broader bullish phase that included a 685% jump in a breakout in late 2025, when ZEC went from ~$60 to above $460. The $594 target arises from a Fibonacci extension after the break of $438, with RSI and MACD maintaining bullish signals according to market technical indicators. At the same time, the shielded supply exceeds $1,000,000,000, underscoring demand for private transactions.
The derivatives structure adds tension through heightened leverage. Open interest in ZEC contracts increased 970%, a figure that suggests greater risk of cascade liquidations. Sentiment reached “Extreme Greed” on May 26, 2025, and volume relative to market capitalization stands at 18.43%, indicating elevated activity beyond a simple speculative bounce. With price around $387.03 at the observation point, ZEC sits alongside other altcoins on lists of assets at risk of liquidation events.
Implications for Zcash bulls
The combination of technical momentum and leverage raises the probability of a significant correction. A healthy adjustment could lead ZEC to retest demand zones between $300–$310 before considering a sustained push toward $594.
Elevated participation in derivatives amplifies volatility and forces risk managers and custodians to review margins and KYC/AML procedures to mitigate counterparty exposure in leverage-heavy conditions.
From a regulatory standpoint, the revaluation of a privacy-focused coin renews debates on balancing innovation and control, with potential impacts on listings, custody requirements and compliance policies at exchanges and institutions.
For product and investment, underlying liquidity (volume/market cap) supports fluid entries and exits, but market fragility from overbought conditions requires operational contingency plans.
The next operational milestone is the survival of the $300–$310 demand zone and the evolution of open interest; its behavior will define whether the market consolidates the advance toward $594 or triggers a deeper correction.
