Zcash (ZEC) has experienced a significant 30-35% price correction from its November peak, raising concerns about further potential declines. The cryptocurrency, which had previously seen gains between 1,130% and 1,800% since April 2025, is now facing pressure from multiple factors including derivative-driven liquidations, profit-taking, and bearish technical signals.
The recent correction has been attributed to several market dynamics working in concert. Leveraged selling in derivatives markets and profit-taking after the parabolic price rises have strained technical support levels. Market analysis indicates that a significant actor, dubbed the “mega whale” James Wynn, predicted a collapse toward the end of the month. Some models are even warning of a potential additional drop of up to 60%, which could place ZEC in a price range of $220-$280.
Macroeconomic conditions have also contributed to the downward pressure, as the strength of the dollar and rising bond yields linked to rate policies have drained liquidity from risk assets like cryptocurrencies. This broader market environment has affected not just Zcash but the crypto sector as a whole.
Key factors behind Zcash’s price decline
Despite the bearish signals, several factors could potentially halt or reverse ZEC’s decline. The upcoming halving scheduled for November 2025 represents a significant supply shock, as it will reduce daily issuance from approximately 3,600 to 1,800 ZEC. Historically, such events have favored price appreciation in cryptocurrencies by reducing new supply.
Zcash’s technological foundation—based on zk-SNARKs, which allow for optional transaction privacy—provides operational flexibility that may appeal to various user needs. Users can choose between transparent or shielded transactions, making the cryptocurrency adaptable to different regulatory environments.
Institutional interest has shown positive signs, with reports indicating a fund has increased positions up to 5% of the total supply, and an investment vehicle with a reported volume of $137 million dedicated to Zcash. Relistings on major exchanges have also provided additional liquidity and support for the token.
Market sentiment around ZEC has shown extreme volatility, with the Fear & Greed index reaching ‘Extreme Fear’ (13) on November 26, 2025, while alternating with periods of greed. This polarization is reflected in the wide range of price predictions, from conservative estimates of $39-$50 according to Binance, to more bullish projections of $599.46 (Changelly), $720-$740 (CoinDCX), and even some forecasts reaching thousands of dollars.
The core technological advantage of Zcash—its ability to provide optional privacy through cryptographic proofs that verify transaction validity without revealing details—continues to be a unique selling point in the cryptocurrency market.
Zcash’s future trajectory will likely be determined by the balance between the current technical selling pressure and the anticipated supply reduction from the upcoming halving.
