Zcash has continued with its price recovery, extending its week-long uptrend. Since falling below $320 a week ago, the altcoin has closed at higher highs, signaling sustained market demand.
As a result, the altcoin is nearly erasing its 2026 losses, jumping to $428, a level last seen in early January before slightly retracing.
As of this writing, Zcash [ZEC] traded at $418, up 8.64% on the daily charts. The altcoin has seen sustained gains amid increased capital rotation into privacy-centered coins.
With the issue of Quantum threat resurfacing after the latest DeFi hacks, investors have rushed to perceived safer alternatives. As a result, the market demand for these coins, especially ZEC, has strengthened significantly.
Zcash sees renewed demand amid capital rotation
Zcash has experienced sustained demand across the spot and futures markets over the past week. On the futures side, over $2.7 billion has flowed into opening new positions compared to $2.5 billion in outflows.
As a result, the altcoin’s Futures Netflow rose 48% to $130 million over the past week. The trend holds on shorter timeframes, with Netflow rising 278% to $83 million in 24 hours.
The increased demand for these positions has significantly affected price action, with particularly strong upside volatility.
Interestingly, the increased demand for futures has also followed a higher liquidation rate. In particular, investors who were shorting the market saw higher liquidation, with over $10 million in shorts liquidated.
On the Spot side, buyers also stepped in to accumulate. According to CoinGlass data, Spot Netflow has remained negative for two consecutive days.
At press time, Netflow was -$4.24 million, indicating higher withdrawals, a clear sign of aggressive spot accumulation.
Combined increased demand on both sides strengthened the altcoin’s upside momentum, leading to recent gains. Often, a sustained period of such demand follows more gains.
Can the momentum hold
In addition to the organic demand recently observed, Zcash saw increased capital inflow from short coverings. The demand across the market, in turn, strengthened the upward momentum.
In fact, the altcoin’s Momentum Shift indicator has held positive for a whole month. This not only showed a shift from bearish to bullish but also indicated that demand has started to outweigh supply.
Usually, these setups emerge when the market is strengthening from a period of weakness and often precede higher prices.
At the same time, ZEC currently holds above the Historical EMAs 1, 2, and 3, validating the strength of the prevailing trend. These conditions suggest ZEC is likely to see more gains on its price charts.
If the trend holds, ZEC will flip $430 and target $450. However, if the trend collapses, Zcash will drop below $400, with the Historical EMA 1 at $374 acting as immediate support.
Final Summary
- ZEC rallied to a four-month high of $428, nearly clearing its 2026 losses.
- Zcash continued its price recovery, with growing demand and renewed capital rotation into privacy crypto.
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