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Zcash rebounds as demand for privacy tokens strengthens
Zcash (ZEC) has staged a powerful recovery, climbing to levels not seen since late November as investors renew interest in privacy coins. The token surged above $500 this week — a rebound of more than 70% from its intra-month low — putting ZEC among the strongest performers in the broader crypto market.
ZEC price chart
Futures open interest and spot volume point to growing demand
One of the clearest bullish signals behind ZEC’s move is the sharp uptick in futures open interest. Open interest for Zcash futures recently approached $1.3 billion, its highest reading since mid-November and up from roughly $700 million earlier this month. Rising futures open interest combined with expanding spot exchange volumes — which topped $4.18 billion on Sunday, the largest daily turnover since December 12 — suggests increasing participation from derivatives traders and spot buyers alike.
Privacy-focused cryptocurrencies across the market have also advanced. Dash and Monero, for example, both posted notable gains from November lows, reinforcing sector-wide momentum that has helped lift ZEC. Alternative privacy projects such as Midnight, Horizen, and Decred have seen renewed buying interest as traders seek exposure to transaction-privacy narratives.
On-chain activity and shielded supply
On-chain metrics support the technical and futures data: daily transactions surged to approximately 46.6k in the last 24 hours, while the shielded supply — Zcash’s privacy-enabled coin pool — rose past 4 million ZEC. Higher shielded supply and increased activity can indicate stronger utility and demand for privacy features, factors that often draw both retail and institutional attention.
Technical outlook: bulls in control
From a technical-analysis perspective, ZEC has cleared several important hurdles. The token moved above the 50-day Exponential Moving Average (EMA), signaling a short-to-medium-term bullish tilt. Price recently pierced the key resistance around $470, the December 13 high, and is challenging the Supertrend indicator’s upper band.
If buyers maintain momentum, the immediate upside target is the year-to-date high near $746. A decisive break above that level would open the door to psychological resistance around $800, where profit-taking may intensify. Conversely, failure to sustain gains could see ZEC retest the 50-day EMA or support in the low-$300s.
What traders should watch
Key metrics to monitor include futures open interest, spot volume trends, Supertrend behavior, and shielded-supply dynamics. These indicators together will help determine whether the current rally is a sustainable sector rotation into privacy coins or a shorter-lived speculative move.
In summary, a combination of rising futures open interest, higher exchange volumes, improving on-chain metrics, and bullish technical signals suggest Zcash has room to run. Traders should remain attentive to liquidity and volatility around major resistance levels while managing risk appropriately.
Source: crypto
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