In recent days, the cryptocurrency Zcash (ZEC) has shown a remarkable bounce, prompting traders and analysts alike to set a bullish target of $875. Let’s delve into the key reasons driving this optimism, currently backed by strong on-chain signals and upcoming product features.
1. A Strong Reversal and Trend Signal
ZEC recently touched a low around $423, and then posted three consecutive positive sessions, closing at successive highs.
At the time of writing, ZEC is trading near $673, marking an impressive ~30.7% gain in one day, underpinned by a dramatic ~82% surge in trading volume.
Importantly, ZEC has broken above both its short-term and long-term moving averages — a classic technical indication of a trend reversal.
These are textbook early signals of a potential move higher — increased volume + a break above key averages = momentum shift.
2. Upcoming Privacy-Focus Feature Fuels Interest
A major driver of bullish sentiment is the upcoming launch of a new feature in the Zashi Wallet: private swaps into ZEC via the Near Intents protocol.
This means users will be able to convert other cryptocurrencies into ZEC with privacy protections — a unique use-case that differentiates ZEC.
While promising, some caution is warranted: blockchain investigator ZachXBT has raised flags about potential information leakage when using transparent Zcash addresses in the process.
Nevertheless, the anticipation of this new functionality is clearly contributing to ZEC’s upward momentum.
3. On-Chain Metrics Highlight Renewed Buying Pressure
The accumulation of ZEC is visible in real data:
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On the spot market: ZEC’s “Buy Sell Delta” has been positive for three straight days, meaning more buying than selling. In one 24-hour window, buys were ~1.6 million versus ~1.4 million sells — a delta of +200,000.
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On the futures side: Derivative indicators such as Futures Taker CVD have turned green, while open interest (OI) surged ~43.9% to ~1.28 billion USD, and futures volume jumped ~104.9% to ~9.4 billion USD.
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The Long/Short ratio currently sits at ~1.04 — more traders are opening long positions than shorts, indicating a skew toward bullish bets.
All these metrics point to strong interest from both spot and derivatives markets, reinforcing the idea that this is more than a short‐term pump.
4. Technical Targeting: From Resistance Break to $875
From a technical perspective, ZEC’s momentum suggests a path upward:
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The current stochastic momentum index (SMI) has seen a bullish crossover at ~6.6, a strong signal of upward acceleration.
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The article highlights that if demand remains strong, ZEC could break above the ~$750 resistance level and aim for the ~$875 target.
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On the downside, however, if the break fails to hold, there’s support around ~$495 (the 18-day moving average).
In short: the combination of momentum, volume, and structural breakouts provide the basis for that $875 target.
5. Risk Considerations & Final Thoughts
While the bullish case is compelling, some caution is needed:
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The privacy swap feature, while promising, is not without risk (e.g., potential leakage of transparent address usage).
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The market is inherently volatile — big volume swings and swings in derivatives positioning can reverse quickly.
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Support around ~$495 must hold if things go awry; a breakdown could invalidate the bullish structure.
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As always in crypto: this is not investment advice — each investor must do their own due diligence.
Conclusion:
ZEC’s recent bounce, paired with strong buying signals, rising derivatives participation, and a forthcoming privacy-enhanced wallet feature, combine to support a bullish target of $875. While the road ahead may have turbulence, the setup certainly merits attention if you are keeping tabs on privacy-focused altcoins.
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