Amid a $20 billion crypto market liquidation, Zcash (ZEC) defies expectations with a 450% surge in a month, hitting a four-year high. How can a privacy-focused asset outperform in such conditions? The answer lies in shifting market sentiment and the resurgence of privacy as a safe haven value.
The price of Zcash briefly reached $296 on October 11 before consolidating around $289. Despite this slight technical pullback, the token maintains a daily gain of 25%, its best performance since late 2021 when it also traded near $295. This bullish momentum is part of an impressive rally: Over 100% weekly gains and nearly 450% over the past month.
The context of this surge is particularly remarkable. While major cryptocurrencies experienced a sharp correction following President Trump’s surprise announcements regarding new taxes, ZEC moved in the opposite direction. Traders massively liquidated their leveraged positions, creating extreme volatility across the market. In this hostile environment, Zcash’s resilience demonstrates a profound shift in crypto investors’ priorities.
The timing of this performance is not coincidental. Cryptocurrencies focused on privacy are experiencing renewed interest in the face of strengthening global financial surveillance. Users are seeking viable alternatives to protect their transaction data, and Zcash precisely addresses this demand.
The current support around $257 will be crucial to watch in the coming sessions. Consolidation at these levels could prepare for a new bullish leg toward $334 if it breaks above $296, according to the 10-minute Fibonacci extension. Conversely, losing this support would likely bring the price back to the $220 zone, or even down to $134, an even more crucial support level for the future.
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Launched in 2016, Zcash relies on zero-knowledge proof technology allowing for completely private transactions. Unlike Bitcoin or Ethereum, the protocol reveals neither the sender, recipient, nor the amount transferred. This architecture offers native confidentiality that transparent blockchains cannot match without layer 2 solutions.
Mert Mumtaz, CEO of Helius Labs, highlights that ZEC has been operating as a distributed proof-of-work network for nine years, offering user sovereignty, advanced encryption, and tokenomics comparable to Bitcoin. Yet, its market capitalization remains a fraction of Litecoin or Cardano, suggesting a clear undervaluation relative to its technical fundamentals.
The active development of the protocol reinforces this thesis. Mumtaz refers to a “renaissance” of the ecosystem, with new contributors focused on performance optimization and integrations with major exchange platforms. This development vitality contrasts with some older projects that are technologically stagnant.
Zcash’s rally cannot be explained by its technical merits alone. Barry Silbert, founder of Digital Currency Group, has multiplied his posts about Zcash in recent days, amplifying market attention on this asset. His influence in the crypto industry brings institutional legitimacy that attracts traditional investors.
The Zcash community itself plays an active role in this dynamic. Members regularly highlight the gap between the current valuation and the real potential of the project. This community mobilization creates a momentum effect that supports price action. As governments worldwide intensify their financial surveillance, Zcash’s protected transaction model is regaining relevance among a user base concerned with preserving their privacy.
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Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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