Key Highlights
- Zcash (ZEC) has witnessed a drop of over 5% after witnessing a rally in the last 7 days, sparking discussion in the community
- However, technical analysts suggest that this downward trend was fueled by the price movement as a standard technical correction rather than a reaction to negative news
- In 2025, the demand for Zcash among institutional investors soared impressively
After surging over 14% in the last 7 days, Zcash has witnessed a correction after dropping over 5.67%, sparking debate in the crypto community.
On December 31, the cryptocurrency dropped in value, declining below $505. At the time of writing, Zcash is trading at around $504.91 with a market capitalization of $8.32 billion, according to CoinMarketCap.
Why ZEC is Falling?
This downward trend in cryptocurrency has attracted the attention of many experts. Market analysts and active traders are largely characterized by this price movement as a standard technical correction rather than a reaction to negative news.
According to some experts, traders are rushing to take profits after seeing a strong rally in the cryptocurrency, which is a natural market rebalancing.
A trader on X (formerly Twitter), Eric Van Tassel, pointed to a rejection at a key higher-time-frame resistance level between $550 and $600. He calls this situation the current action as a normal rebalancing within the existing bullish pattern.
Other analysts, including Crypto Tony and Vexe, have highlighted weakening short-term momentum. They mentioned that the price is testing the lower end of its recent range and suggest that if support fails, a further correction toward the $450 to $470 zone could occur.
Despite this near-term caution, other observers highlight the overall healthy structure. Another analyst notes that if price dips are being met with aggressive buying, the trend of higher lows is still intact. This shows underlying accumulation.
Luckily, there are no negative developents are linked to today’s price fall. The underlying fundamentals of Zcash are showing strength. Institutional interest is evident, with firms like Cyberpunk Technologies reportedly adding $29 million worth of ZEC to their holdings. Adoption of the network’s core privacy feature, the shielded pool, has reached a record high, with about 30% of the total ZEC supply now private. Furthermore, asset manager Grayscale highlighted Zcash as a top-performing privacy asset in its fourth-quarter 2025 report.
All in all, many market participants are reportedly looking to buy at lower levels in anticipation of a potential continuation of the upward momentum into the new year.
Institutional Demand for Zcash Accelerates in Late 2025
Interest from major financial institutions in the privacy cryptocurrency Zcash has risen sharply as 2025 comes to a close. This surge is coming from the growing demand for financial privacy tools, alongside clearer regulations and rising concerns about surveillance in the age of artificial intelligence.
Due to the #ZEC price touch right at $500, which happens to align perfectly with the channel midpoint of the rising wedge pattern I’ve charted as well as the top of a 1H order block, I’m now extremely confident that this is the pattern that will play out. Given that, go do your… pic.twitter.com/l5UJuPr5cI
— Eric Van Tassel (Not a Financial Advisor!) (@XRPathologist) December 31, 2025
A major financial institution, Cypherpunk Technologies, is a company listed on the Nasdaq stock exchange and backed by Cameron and Tyler Winklevoss Capital, the founders of the Gemini exchange.
On December 30, Cyberpunk announced a new purchase of $29 million worth of ZEC, acquiring 56,418 tokens. This acquisition increases the firm’s total ZEC holdings to 290,062 tokens, which is approximately 1.76% of the cryptocurrency’s circulating supply and is valued at around $152 million.
Cyberpunk has announced the formation of the corporate treasury to heavily focus on Zcash, with a stated goal of accumulating 5% of the entire network’s supply.
Also Read: Long-Term Bitcoin Supply Turns Positive for First Time Since July 2025
