Zcash (CRYPTO: ZEC) jumped 12% on Thursday, breaking above short-term resistance off the back of strong bullish momentum.
Zcash Breaks Through Key Fibonacci Wall With EMAs Turning Higher
ZEC Price Action (Source: TradingView)
ZEC has retraced sharply from its $300 support base and is now testing the first major Fibonacci resistance cluster.
The 20-, 50- and 100-day EMAs are beginning to curl upward, a sign that selling pressure is weakening and buyers are starting to regain control.
The next retracement levels define the path forward.
Resistance sits at $459 at the 0.382 level, followed by $508 at the 0.5 mark and $556 at the 0.618 extension, which represents the largest profit-taking zone for traders.
A clean break above $459 opens the door for a test of $508, where short-covering typically accelerates.
The Supertrend remains green at $381 and the price is decisively above it.
A continuation through the upper resistance could trigger a trend flip, a move that historically attracts momentum-driven buyers.
Flows Turn Positive As Privacy Narrative Strengthens
Zcash On-Chain Activity (Source: Coinglass)
ZEC recorded $15.03 million in net inflows today, reinforcing the breakout's validity.
This comes as privacy-focused cryptocurrencies outperform broader markets during regulatory scrutiny of digital transactions and identity requirements.
Zcash is up more than 650% year-to-date, while Monero (CRYPTO: XMR) gained 93%, outpacing Bitcoin (CRYPTO: BTC), Ethereum (CRYPTO: ETH) and Solana (CRYPTO: SOL) during several cycles in 2025.
Trading activity has surged as well.
Zcash volumes exceeded $7 billion in November, rising more than 1,100% in three months.
The sector's combined market cap reached $59.8 billion in Q4, driven by stronger demand for encrypted payment rails amid expanding surveillance concerns.
Investors Shift To ZCash Over Monero In Regulatory Cycle
Funds have shown a clear preference for Zcash because its opt-in privacy model fits more easily within compliance frameworks than enforced anonymity.
It remains the only privacy coin with a Grayscale trust, offering institutions exposure without directly managing private keys or navigating stricter reporting risks.
Analysts say flows appear to be positioning ahead of Zcash's 2027 halving and growing expectations that regulators may favor selectively private assets while pressuring fully anonymous alternatives.
Privacy advocates described recent monitoring proposals as a "colossal breach of privacy," while others claimed, "the sooner you understand this, the sooner you'll get encrypted money," framing privacy coins as a hedge against expanding financial surveillance.
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