Zcash (ZEC) has seen a nearly 1,000% gain over the past twelve months, with an additional 50% jump in the last month alone. The rally, fueled by Grayscale's filing to convert its Zcash Trust into a spot ETF and a short squeeze on May 20, briefly pushed ZEC's market cap above $11 billion. But the momentum appears to be stalling as sentiment shifts from euphoria to caution.
Grayscale's ETF filing lit the fuse
The biggest catalyst came when Grayscale filed to turn its Zcash Trust into a spot ETF. The move signaled growing institutional interest in privacy-focused cryptocurrencies and gave traders a reason to pile in. ZEC had already been climbing, but the ETF news accelerated the run.
The May 20 squeeze
On May 20, ZEC experienced a violent short squeeze. The price jumped from $568 to $686 in just six hours — a 17% move that triggered $28 million in liquidations. The surge was so aggressive that ZEC's market cap crossed the $11 billion threshold, a milestone few expected for a privacy coin.
That same day, social media chatter about ZEC peaked. Santiment recorded seven dominance spikes in one week, with the highest hitting 10.02% on May 20. The hype was real — but it didn't last.
A buy signal on the charts
Crypto analyst Ali Martinez recently flagged a TD Sequential buy signal on ZEC's 12-hour chart. According to Martinez, if the price holds above $500, a push to $642 is possible. That's a decent gain from current levels, but it hinges on support holding.
Zebra patch addresses security holes
Under the hood, the Zcash Foundation released Zebra 4.5.0 to fix several security vulnerabilities, including a consensus-related bug. The update also enables mining to shielded addresses, a feature that strengthens Zcash's privacy promise. Technical improvements like these keep the network running, but they rarely move the price on their own.
Sentiment turns sour
After the initial euphoria, sentiment around ZEC flipped negative. Traders rotated into other assets, and concerns about the sustainability of the rally grew. The same social channels that were buzzing on May 20 went quiet — or turned critical. With no further ETF news, ZEC has struggled to hold its highs.
The next concrete event to watch: the SEC's decision on Grayscale's spot ETF. If it's approved, ZEC could see another leg up. If not, the retreat might accelerate.
