Zcash (ZEC) has gained new momentum to reach the $500 mark after its exchange balance decreased by approximately 44%. Larger ZEC portfolios increased their holdings by nearly 10%.
The price of Zcash is hovering near the $500 mark after major participants increased their holdings by 8.85%, adding approximately 42,623 tokens. Meanwhile, shielded pools reached roughly 30% of the total supply.
Many analysts believe these movements eased selling pressure, leading to a significant rise in the token’s price. Simultaneously, the US regulator closed its investigation into the Zcash Foundation without filing charges or imposing sanctions, a development that removed a major burden and supported short-term sentiment.
How high can the price of Zcash (ZEC) go?
Technical indicators show mixed signals regarding ZEC’s future price. The Chaikin Money Flow registered a bullish divergence, the 14-day RSI was at 65.49 on January 27, and prices were above the 10- and 20-day EMAs. Bearish projections suggest ZEC could find a floor at $266 and support at $326 and $340.
ZEC’s funding rates were negative at the end of January, and leveraged short positions were reopened, both factors increasing the potential for a renewed downward move if sellers retest the overhead resistance.
Finally, the market indicates a potential break above $450, which would validate the belief that ZEC could reach $500. Meanwhile, if the price fails to hold above $326 or $340, it could fall to $266.
Traders should watch funding, open interest flows, and spot balances on exchanges for confirmation; these metrics will determine whether the on-chain tightening translates into a sustainable price discovery or a short-lived squeeze followed by renewed selling.
Investors and trading desks will now focus their attention on price action and positioning during February 2026 as the immediate test: a sustained rally to $450 would increase the likelihood of the $500 scenario, while a break below the mid-$300 level would shift the bias back to the downside and validate the caution signaled by the derivatives markets.
