The popular privacy coin has stunned the crypto community after its price exploded by over 2,600% over the past year. Its market capitalization briefly exceeded $25 billion, making it one of the 10 biggest digital assets.
The main catalysts for its impressive rally included the broader market’s resurgence, the debut of the ZEC ETP in Europe, the launch of a spot Zcash ETF, and other factors. However, the crypto sector has seen a substantial correction over the last 24 hours, dragging the privacy coin down with it, and some analysts think the bull run may now turn into a violent crash.
Is the Rally Over?
Earlier this week, ZEC surpassed $1,600 for the first time since 2016. And while many expected the upswing to continue, the whole market headed south, and now the privacy token is worth roughly $1,470 (per CoinGecko).
X user Crypto Patel noted that ZEC has already delivered an “extraordinary move,” adding that anyone who accumulated during 2024-2025 has witnessed a massive return.
At the same time, the analyst warned people to be highly cautious in the $1,600-$2,000 range, claiming that a cup-and-handle structure suggests this could mark the local top. The market observer argued that ZEC has started showing signs of “extreme extension from a psychological perspective” following the major rally.
Crypto Patel then shared a long-term prediction that is clearly bearish. They believe that if the current cycle eventually enters a distribution and downtrend phase, the price could dump below $500 in the next 1-3 years. The analyst made an even grimmer forecast, envisioning a collapse to $200 if the long-term structure completely reverses.
For their part, X user Zayn recently revealed that they made $30,000 after opening a short position on ZEC. They later said the paper profit has risen above $60,000, calling it one of their “biggest wins this year” and wondering whether to keep the position open until they potentially make $100K.
Are the Bulls Coming Back?
ZEC’s recent correction shouldn’t be directly interpreted as the end of the overall upward trajectory. After all, the asset has been on a tear for quite some time, and pullbacks are an inevitable part of the whole move.
Meanwhile, some investors have started abandoning centralized platforms and shifting into self-custody solutions after a period of flocking into exchanges. The latest development is clearly bullish, as it reduces immediate selling pressure and could open the door to a rebound.
Source: CryptoPotato
