Zcash (ZEC) Price Pumps 22% — Data Shows Short Squeeze Could Drive It to $592

Zcash (ZEC) price has increased by 22% over the past 24 hours. In the process, the coins become the biggest gainers among the top 100 cryptos.

Interestingly, this development happened after the U.S. President Donald Trump failed to go ahead with his threat of bombing Iran.

Instead, he announced a ceasefire. Following the move, Zcash coin has climbed into the #22 spot by market capitalization.

But that is not all that is happening with cryptocurrency. In this analysis, CCN breaks down why Zcash’s price is up and what potentially lies ahead for the market value.

Zcash Breaks Crucial Resistance

On the 4-hour chart, Zcash’s price recently cleared the $255 level, which had acted as a major resistance throughout late March.

This breakout marks a clear shift. Previously, ZEC was consolidating after a correction, but the latest move confirms buyers have regained control.

Before the breakout, Zcash was forming higher lows along an ascending trendline, indicating consistent accumulation.

At the same time, both the 20-day and 50-day EMAs are trending upward, reinforcing the bullish momentum.

Momentum indicators further support the move. The Awesome Oscillator (AO) has surged into positive territory with strong green bars, indicating increasing buying pressure.

However, the vertical move also suggests the market may be entering a short-term overextended phase. Rapid rallies like this are often followed by brief pullbacks or consolidations before continuation.

But for ZEC, the $255 level is now the key support to watch. By the look of things, Zcash’s price will likely hold above this zone.

If that happens, the bullish structure remains intact. In that case, ZEC could continue higher toward $270 and potentially $290 if momentum persists.

New Development, Better Price?

Outside the technical setup, the other driver comes from institutional momentum.

Foundry, which operates the world’s largest Bitcoin mining pool, officially disclosed that it will expand into Zcash this month.

“Zcash has matured into an institutional-grade asset, but the mining infrastructure supporting it hasn’t kept pace. At Foundry, our mission is to empower decentralized infrastructure that strengthens the digital asset ecosystem, and we believe Zcash plays a critical role in advancing financial privacy,” Mike Colyer, CEO of Foundry said.

For context, this development introduces institutional-grade compliance and transparency to Zcash coin mining for the first time.

As a result, confidence is rising. Large North American mining players are now entering the network.

At the same time, development momentum is accelerating.

Last month, the Zcash Open Development Lab launched a $25 million ecosystem fund.

Backed by major firms including a16z crypto, Paradigm, and Coinbase Ventures, the fund is focused on building private financial tools and a new wallet known as “cashZ.”

This capital injection is sending a clear signal. Zcash is transitioning away from a centralized development model toward a more decentralized and well-funded ecosystem.

Shorts in Trouble

Meanwhile, the on-chain perspective also contributed to the bullish thesis.

According to Santiment, funding rates have flipped negative, meaning a large portion of traders are positioned short, betting against the rally.

However, the Zcash coin price is moving in the opposite direction.

This creates the conditions for a short squeeze. As ZEC’s price continues to rise, short sellers begin to lose money.

Eventually, they are forced to close their positions. This closing process requires buying back the asset, which adds more upward pressure on the price.

Importantly, the latest price breakout above $300 acts as a psychological and technical trigger. If the price holds above this level, more shorts are likely to get squeezed.

This could accelerate the move toward $340 and potentially $360 in a continuation phase.

At the same time, the rally’s speed suggests Zcash’s price is becoming overextended.

Short squeezes often produce sharp spikes followed by quick pullbacks. Therefore, volatility is likely to increase.

Looking ahead, as long as funding remains negative and the price holds above $300, ZEC’s market value will likely increase.

ZEC Price Forecast: Bulls May Be Back

On the daily chart, Zcash is showing a strong bullish reversal, with price breaking out of a prolonged downtrend.

After months of decline, ZEC formed a clear base near the $ 202.64 zone (0.236 Fib).

From there, price began to compress under a descending trendline, signaling accumulation.

The recent breakout above this trendline confirms a structural shift. At the time of writing, ZEC is now trading around $320, reclaiming the 0.382 Fibonacci level near $300, which is a key bullish milestone.

Momentum indicators support this move. The RSI has surged above 70, showing strong buying pressure, while the MACD has crossed bullish and is expanding. This indicates that momentum is not only positive but accelerating.

However, the bigger picture comes from how this breakout aligns with the short squeeze seen on lower timeframes.

With ZEC’s price reclaiming key resistance and moving into higher Fibonacci zones, short positions trapped during the downtrend are now under pressure.

Going forward, the next major resistance sits around $389.55 (0.5 Fib).

If momentum holds and the squeeze continues, Zcash’s price could extend toward $473.07 (0.618) and even $592.03 (0.786) in a more aggressive scenario.

On the downside, $300 is now the key level to hold. A drop below this would weaken the breakout and could lead to a pullback toward $260–$240.

About the Author

Victor Olanrewaju

Victor Olanrewaju is a crypto analyst and reporter at CCN with deep roots in on-chain research and technical analysis. His crypto journey began in 2017, but it was the 2020 Uniswap airdrop that sparked a full-time pivot into the space.

With a foundation in copywriting, Victor honed his craft creating high-converting content for leading crypto brokers — most notably an XRP price prediction that ranked #1 on Google during the 2021 bull run.

He later joined AMBCrypto in 2022, where he combined storytelling with technical and on-chain analysis to cover key market narratives.

In 2024, he expanded his expertise at BeInCrypto, collaborating with analysts and using tools like Glassnode, Santiment, and IntoTheBlock to break down Bitcoin and altcoin trends.

At CCN, Victor covers the top cryptocurrencies, memecoins, macro shifts, blending real-time insights with deep-dive metrics.

He holds a Bachelor’s degree in Physics from the University of Ibadan, equipping him to simplify complex data for a wide audience. Follow his work or connect on LinkedIn or X.

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