Zcash has extended its explosive recovery after confirming a bullish Adam and Eve pattern on the weekly chart, with traders now watching a potential breakout rally toward the $900 region.
Summary
- Zcash price surged more than 110% in a month after confirming a bullish Adam and Eve breakout pattern, with traders targeting a potential rally toward $929.
- Grayscale’s spot Zcash ETF filing, the SEC’s closure of its Zcash investigation, and shrinking liquid supply boosted institutional and retail demand for ZEC.
- CoinGlass data showed dense short-liquidation clusters between $680 and $700, while analysts warned the token remains heavily overbought near current levels.
Zcash (ZEC) price rose more than 110% over the past month and briefly touched $682 on May 22 before retreating toward the $600 support area at press time. From its year-to-date low, the privacy-focused cryptocurrency has rallied more than 245%, outperforming most major altcoins during the same period.
The latest leg higher followed a combination of regulatory relief, institutional accumulation, and aggressive short liquidations. Earlier this month, the U.S. Securities and Exchange Commission officially closed its investigation into the Zcash Foundation without recommending enforcement action, removing a long-standing compliance risk that had weighed on investor appetite for privacy-focused assets.
Grayscale accelerated the institutional narrative on May 12 after filing with the SEC to convert its Zcash Trust into a spot Zcash ETF on NYSE Arca. The proposal placed ZEC among a limited group of altcoins pursuing regulated spot ETF exposure in the United States as fund issuers continue expanding beyond Bitcoin and Ethereum products.
Arthur Hayes recently disclosed that Zcash had become his second-largest crypto holding after Bitcoin, while Raoul Pal and Multicoin Capital publicly backed the privacy-coin sector during the rally. Their comments fueled speculation that institutional capital could increasingly rotate into privacy-focused infrastructure projects after years of regulatory uncertainty around anonymity-enhanced cryptocurrencies.
On-chain supply conditions tightened sharply during the rally. Community data showed more than 30% of Zcash’s circulating supply, roughly 5.18 million coins, moved into privacy-focused shielded pools. The reduction in tradable supply amplified upside volatility once spot demand accelerated above key resistance levels.
Foundry USA later added official mining support for ZEC, bringing institutional-scale mining infrastructure and additional hash-rate stability to the network. During Consensus Miami, the Zcash Open Development Lab also unveiled early-stage “quantum-recoverable” wallets as part of a broader push toward post-quantum security protections.
Adam and Eve breakout structure projects move toward $929
Weekly charts now show Zcash completing a textbook Adam and Eve bottom formation after reclaiming the neckline near the $560 region. The structure formed after a sharp capitulation low near $190 earlier this year transitioned into a rounded accumulation phase throughout March and April.
The measured move from the pattern projects a breakout target near $929, representing roughly another 50% upside from current levels. Traders calculate the target by measuring the distance between the neckline and the pattern low before extending the same range upward from the breakout point.
The chart also shows ZEC reclaiming the Supertrend indicator, which flipped bullish near the $314 region earlier this quarter. Price continues holding well above that level despite the recent rejection near local highs.
Momentum indicators remain constructive on higher timeframes. The weekly MACD histogram has expanded deeper into positive territory while the MACD line continues trading above the signal line, a structure traders often associate with continuation rallies rather than exhausted breakouts.
Crypto trader Ardi described Zcash as “one of the best macro recovery charts in the market right now” after the token completed a V-shaped recovery back into the upper $680 resistance region. In a post published on X, he added: “Once that level breaks and confirms as support, I’m still targeting a move into the $740 region next.”
Liquidation clusters and whale positioning tighten around $700
CoinGlass liquidation heatmap data shows dense leverage concentration between $680 and $700, where large short liquidation clusters accumulated during the past week.
A breakout through that resistance range could trigger another cascade similar to the rally earlier this month that erased more than $55 million in bearish positions during a single trading session.
Major liquidity pools have also formed around the $570 and $560 support zones beneath current prices. Those levels align closely with the Adam and Eve neckline retest area, making them key regions traders will likely monitor for dip-buying activity if ZEC extends its pullback.
Lookonchain reported that a trader reopened a 40x leveraged Bitcoin short position worth more than $40 million while simultaneously holding a 53,500 ZEC long valued near $33 million. The platform said the trader’s Zcash position briefly fell nearly $1.9 million underwater after the latest correction.
Leverage exposure across ZEC derivatives markets has expanded rapidly alongside the price rally. Several perpetual futures platforms recorded elevated funding rates during the recent advance as traders crowded into aggressive long positions, expecting continuation toward new cycle highs.
Bitcoin stabilized near the $77,000 region after heavy ETF-driven selling pressure earlier this month, allowing speculative capital to rotate back into higher-beta altcoins, including Zcash, Solana, and other privacy-focused assets. The improvement in broader crypto sentiment helped sustain momentum across altcoins that had already broken above key technical resistance levels.
Upcoming U.S. inflation and labor-market reports remain another major focus for traders after Treasury yield volatility pressured crypto markets earlier this quarter. Any economic data supporting expectations for future Federal Reserve rate cuts could improve liquidity conditions for speculative assets and reinforce demand across altcoins.
Oil prices also retreated this week after reports that the United States and Iran extended ceasefire negotiations tied to shipping activity near the Strait of Hormuz. The pullback eased some inflation concerns across global markets and helped improve sentiment toward risk assets, including cryptocurrencies and high-beta altcoins like Zcash.
Weekly candles have started printing longer upper wicks near the $680 resistance region after ZEC’s 245% rebound from yearly lows. The rejection suggests some traders have begun taking profits into strength while leveraged positioning across futures markets remains elevated.
Per analyst Skinny, Zcash is highly overbought at current levels, and while the token could still climb toward last year’s highs, it may quickly reverse bearish once it reaches the $740 resistance zone.
Failure to hold the $560 breakout zone could weaken the current bullish structure and expose downside retracements toward the psychological $500 level. A sustained breakdown below that region would invalidate the Adam and Eve continuation setup and likely trigger another wave of long liquidations across leveraged derivatives markets.
For now, Zcash continues trading above its key breakout threshold while shrinking liquid supply, institutional catalysts, and concentrated short exposure keep traders focused on a potential move toward the $900 region.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
