$ZEC : three-month rally, correction, and key signals for traders

In the last three months, Zcash has become one of the loudest altcoins of the year. The coin started at levels of $70–80 at the beginning of October, after which it experienced a parabolic rally to over $700, adding more than 1000% and returning to the top 20 by market capitalization. Such a jump was a direct result of the combination of several factors: the revival of global interest in privacy technologies, active discussions about the regulation of confidential transactions, and the main trigger — news from Grayscale regarding the conversion of its ZEC trust into a possible spot ETF.

Additionally, the market was supported by the technical update NU6.1, which changed the model for distributing block rewards, increased funding for the ecosystem, and signaled the return of development teams to active network updates.

After peaking, the coin underwent a sharp correction to $320–350, which looks natural after a 10× increase. Currently, ZEC is trading in a phase of high volatility, with the key support level being the zone of $280–300.

The prospects for ZEC will depend on two factors: the actual increase in the use of private transactions and the advancement of the ETF narrative.