ZCash Price Skyrockets 12% After Major Crash - But Is This Just a Dead Cat Bounce?

ZCash just staged a dramatic 12% rebound following its recent crash. The privacy-focused cryptocurrency's sudden surge has traders buzzing—but seasoned analysts are already sounding the alarm about looming sell pressure.

The Rebound Reality Check

That double-digit jump looks impressive on the charts, no doubt. Buyers rushed back in, pushing prices up after the dip. But here's the catch: every major recovery attracts two types of participants—true believers and quick-profit takers.

Analysts Spot Trouble Ahead

Market watchers point to heavy resistance levels just above current prices. Whales who bought the dip might cash out once they hit their targets, creating exactly the sell pressure everyone's worried about. It's the classic crypto dance—pump, celebrate, then watch for the dump.

The Privacy Coin Paradox

ZCash operates in regulatory gray areas that traditional finance types love to hate—which ironically makes its volatility both a feature and a bug. When privacy coins move, they don't just walk; they either sprint or faceplant.

So enjoy the green candles while they last. Just remember that in crypto, today's recovery can become tomorrow's resistance—especially when everyone's waiting for someone else to sell first. The market giveth, and the market taketh away, usually right after you've finished celebrating.

Whale activity rises but sellers still dominate

Ardi, a crypto analyst, documented that ZEC is witnessing a growing whale activity with a positive delta of +1.06 as big holders seek to power a recovery. Nevertheless, he pointed out that the sellers remain in control at a key resistance.

According to Ardi, the $380 level remains the biggest barrier for bulls. Sell volume at this zone reached $18.7 million, almost three times the recorded $6.1 million buy volume. He said this imbalance shows “heavy distribution,” suggesting larger players may be using available liquidity to exit.

$ZEC / Zcash

Whales are trying to step in (Green Delta +1.06) and force a bounce.

But look carefully the volume profile the moment price hit the $380 resistance pivot. They are getting fed. Sell volume (18.7M) was nearly triple the Buy volume (6.1M) the moment price hit that… https://t.co/qieXJDGPWr pic.twitter.com/h3JIy1AMb6

Ardi warned that if ZEC fails to reclaim $380, current whale buying might simply become “exit liquidity” for bearish traders. A breakout above this level, however, could trigger a short squeeze toward $420, while rejection could drag ZEC back into the $250–$290 range.

ZEC shows swing-trade opportunity

Analyst Altcoin Sherpa said ZEC is also presenting a possible swing-long setup after dropping to the 0.618 Fibonacci retracement, a level often viewed as strong support.

He added that while a return to all-time highs seems unlikely in the short term, traders could still look for a 20–50% upside if momentum strengthens. He advised placing stop-losses below the 0.618 zone to reduce risk.

Bitget listing adds fresh momentum

Part of ZCash’s renewed momentum comes from its recent listing on Bitget, which is notable because privacy coins are often delisted by exchanges due to regulatory pressure.

This listing signals stronger institutional willingness to support ZEC at a time when compliance rules remain strict.

Institutional interest surged in november

In the rally of ZEC last month, new ZEC treasury allocations were announced by major institutions, such as Reliance Global and Cypherpunk Technologies led by Winklevoss. This contributed to the push of the prices to the multi-year highs before the sharp decline started.

With ZEC recovering, the market is divided, bulls refer to the renewed exchange support and whale activity, and bears to the strong selling clusters. The subsequent action at the $380 mark could either make or break this rebound into a trend or a temporary spike.

Also Read: Grayscale Moves to Convert Zcash Trust into Spot ETF