Zcash Pulls Back 20% as Traders Assess Strength of Recent Rally

Zcash has fallen roughly 20% from its recent peak after a rally that saw the token gain more than 1,000% from lows below $70 in late 2025. The surge was supported by institutional accumulation, including purchases by Multicoin Capital, and public endorsements from Naval Ravikant and Arthur Hayes. A reported $38 million short position placed near the top has become profitable as prices retraced, fueling debate over market structure and liquidation-driven volatility. Supporters point to Zcash’s zk-SNARKs privacy technology and increasing network hashrate, while critics question long-term adoption. Traders are closely watching the $500 level as a key support zone.