Zcash’s defining privacy feature has coincided with an abrupt market reversal as buying pressure plunged by about 97%, placing the token at immediate technical risk. The collapse has triggered sharp short-term losses and exposed the asset to intensifying regulatory and liquidity constraints.
ZEC suffered rapid, severe downside, including an approximate 20% drop within 24 hours and a further 32–43% decline over the following week, according to market movement reported in recent coverage. Key technical supports failed, including the EMA200, and monthly trend indicators have flipped to bearish territory, signalling an erosion of structural momentum.
Analysts cited in market commentary expect an additional 30–40% correction that could push the price toward a $200–$230 area if selling persists. Immediate danger lies between $281 and $230; a sustained break below $309 would likely accelerate outflows and liquidations.
Regulatory pressure has shifted Zcash’s privacy attributes from an asset feature into a commercial liability. Several jurisdictions named in reporting — including Japan, South Korea and Australia — have moved to ban or restrict privacy coins, and the EU’s Anti-Money Laundering Regulation (AMLR) is set to take effect on July 1, 2027, tightening compliance requirements across member states.
Regulatory headwinds, exchange access, and market implications
Exchange access has already been affected: Bit2Me delisted ZEC in March 2025, a move that reduces on‑ramps and spot liquidity in regulated markets, according to the exchange’s status update. Those developments make it harder for institutional or treasury buyers to hold or custody shielded tokens in standard channels.
On-chain and community signals show uneven responses. Development of shielded pools and privacy tooling continues, but on-chain activity for shielded ZEC has stagnated, indicating falling demand for privacy-first transactions. Large holders appear to have reduced aggressive accumulation, creating an environment where retail buyers are more exposed to concentrated whale moves and leverage dynamics.
Historical context underscores the risk profile. ZEC posted outsized gains earlier in the cycle — including a 1,442% surge at one point and an 845% jump in 2025 — driven in part by high-profile support such as Winklevoss backing and reported acquisitions (one entity acquiring roughly 5% of supply).
The confluence of a near‑total collapse in buying pressure, clear technical breakdowns and mounting regulatory constraints leaves Zcash on a precarious path.
