Zcash skyrocketed 223% to crush XRP! Why did the Privacy Coin narrative suddenly ignite the market?

Zcash saw a big pump of 223% in October, skyrocketing from $74 to $240, breaking a three-year downtrend and surpassing the 200-week MA, reigniting market enthusiasm for Privacy Coin narratives. While established coins like XRP and ADA are stuck in a Sideways mire, how was ZEC able to break through against the trend? The perfect trio of zk-SNARKs technology, a surge in global privacy demand, and technical breakthroughs is rewriting the narrative logic of the Crypto Assets market.

Zcash Creates Miracles: The Perfect Storm Behind a 223% Pump

(Source: Trading View)

The cryptocurrency market in October witnessed a rare phenomenon: while Bitcoin oscillated at a high of $120,000 and Ethereum struggled around $4,000, an old coin that had been quiet for many years suddenly erupted with astonishing energy. Zcash skyrocketed from $74 to $240 in just one month, achieving a growth of 223%. This performance not only far surpassed mainstream coins but also completely broke the downward trend that had plagued ZEC for nearly three years.

The starting point of this wave of Zcash's big pump can be traced back to early October, when a statement from well-known Silicon Valley investor Naval Ravikant ignited the fuse for the entire Privacy Coin sector. He positioned Zcash as "insurance against Bitcoin," and this succinct expression quickly resonated within the crypto assets community. The long-neglected topic of privacy protection began to spread widely on social media, and traders started to reassess the value of Privacy Coins, discovering that this undervalued sector is undergoing a fundamental valuation reassessment.

Meanwhile, XRP and ADA, the two former darlings of the market, are showing completely different performances. XRP, although supported by ETF expectations, is maintaining around $2.8, but the overall trend is weak, facing a daily whale sell-off pressure of $50 million, with its pump far less than that of Zcash. The situation for Cardano (ADA) is even more awkward; despite ongoing technical development, the coin's price performance is mediocre, failing to keep up with the overall upward trend of the market. In contrast, Zcash's explosion is particularly eye-catching, leading the market to question: why Zcash, and not those projects with larger market caps and more active communities?

The uniqueness of Zcash's big pump this time lies in the perfect combination of technological breakthroughs, narrative shifts, and market sentiment, rather than just pure speculative hype. After years of silence, Zcash has returned to the center of market discussions, no longer just a "once glorious" historical relic, but redefined as a strategic asset with a unique value proposition. The revival of the Privacy Coin narrative has made investors realize that in a digital age where surveillance is ubiquitous, financial privacy may be the most underestimated scarce resource. The power of this shift in perception is most intuitively reflected in the price movements.

Technical Breakthrough: Confirmation Signal for the End of a Three-Year Bear Market

From a technical analysis perspective, the recent big pump of Zcash is not only a breakthrough in price numbers but also the result of multiple key technical indicators simultaneously issuing bullish signals. The most important breakthrough occurred on the weekly chart, where ZEC successfully broke through the descending resistance line that has plagued it for nearly three years. This trend line has been suppressing the price since the peak of the bull market in 2021, with every rebound being hindered here. This clean and decisive breakthrough, combined with a massive increase in trading volume, sends a clear signal to the market: the long-term bear market for Zcash may have ended.

More convincing is Zcash's recovery above the 200-week moving average. This long-term moving average, regarded by technical analysts as the "line between bulls and bears," holds special significance in the crypto assets market. Historical data shows that when a coin manages to reclaim and sustain above the 200-week MA on a weekly chart, it often signals the beginning of a new long-term upward trend. Zcash has achieved this technical milestone for the first time since 2021, marking the strongest bullish confirmation signal since the end of that bull market.

The performance of the Bollinger Bands indicator is equally impressive. ZEC not only broke through the upper band of the Bollinger Bands but also closed above it with a strong green weekly candle. This pattern is known as a "Bollinger Band breakout" in technical analysis, which typically indicates a significant expansion of volatility and a resurgence of buying power. This signal suggests that Zcash is transitioning from a long-term low-volatility sideways state into a high-volatility upward mode, with market funds beginning to refocus and flow into this asset.

From the perspective of the consolidation range, Zcash has ended a long sideways movement between 30 USD and 60 USD for nearly three years. This prolonged bottom consolidation usually accumulates significant upward energy, as during this process, weak hands are continuously washed out while steadfast long-term holders keep accumulating at low levels. Once a breakout occurs, this accumulated energy will be released in a short period, driving the price to rise rapidly, which is exactly what we are seeing with Zcash. Technical analysts generally believe that breakouts after such a long period of consolidation often have higher reliability and sustainability.

Zcash achieved what XRP and ADA could not: a victory of differentiated value

To understand why Zcash, rather than XRP or ADA, is leading this market trend, it is necessary to delve into the fundamental differences among these three projects. Zcash's core value proposition is privacy protection, completely removing transaction data from the public ledger through zk-SNARKs technology, a feature that most other crypto assets cannot provide. As Zcash's chief engineer Sean Bowe explained, "Even a quantum computer analyzing the blockchain a thousand years from now would not be able to determine who performed each shielded transaction." This mathematical level of privacy assurance has a unique appeal in the current global awakening of privacy awareness.

In contrast, the value proposition of XRP mainly focuses on the efficiency of cross-border payments and collaboration with traditional financial institutions. Although Ripple has achieved a stage victory in its legal battle with the SEC, the anticipated approval of the XRP ETF has also provided support, but these narratives have been fully digested by the market. The problem facing XRP is the lack of new catalysts, coupled with ongoing whale selling pressure (50 million USD daily), which has suppressed its price performance. More critically, the value proposition of XRP relies on the adoption of the traditional financial system, a process that is slow and fraught with uncertainty, making it difficult to generate explosive market reactions in the short term.

Cardano (ADA) faces another dilemma. As a smart contract platform that emphasizes academic rigor and peer review, ADA has indeed made progress in technological development, but its ecosystem's actual adoption and activity level are far inferior to competitors like Ethereum and Solana. The narrative around ADA is more focused on "future potential" rather than "current applications"; this positioning may be favored during the peak of a bull market, but it appears weak during stages when the market requires clear value propositions. Furthermore, the smart contract platform space is extremely crowded, and ADA needs a stronger differentiation advantage to stand out.

The victory of Zcash lies in its clear, unique, and difficult-to-replicate value proposition. The core logic of the Privacy Coin narrative is: in a world where digital surveillance is becoming increasingly prevalent, financial privacy is becoming a scarce and valuable resource. Although Bitcoin is decentralized, its blockchain is completely transparent, allowing anyone to trace the flow of funds. For high-net-worth individuals and institutions that already hold a large amount of Bitcoin, this transparency can become a security risk. The complete privacy protection features offered by Zcash provide a practical solution for these users.

More importantly, the big pump of Zcash occurred at a special time: governments around the world are accelerating the promotion of digital identity systems and transaction monitoring, and the development of Central Bank Digital Currencies (CBDC) will give governments unprecedented financial surveillance capabilities. In this context, ZEC, as one of the few assets that can completely erase data traces through mathematical methods, has its strategic value re-recognized. In contrast, XRP seeks cooperation with regulatory authorities, while ADA emphasizes academic rigor; the appeal of these narratives in the current market environment is clearly not as strong as the theme of privacy protection.

Target $400: Key Support and Resistance Level Analysis

Technical analysts generally hold an optimistic view on the future trend of Zcash, but they also clearly point out several key price levels that need attention. Currently, the ZEC price is around 240 dollars, with the first important resistance level appearing at 280 dollars. This level has been rejected multiple times during the 2021 cycle, making it a significant supply zone. If Zcash can break through and stabilize above 280 dollars, it will confirm a strong upward trend, opening up space for further increases.

If the current momentum can be maintained, the next target price for ZEC will be $320, followed by the more ambitious $400. These price levels align with the historical supply zones during the 2021 bull market and are also significant points of Fibonacci extension. From a risk-reward perspective, if positions can be built at the current price level or during a pullback, the potential upside could reach 40%-66%, which is still considerable for a coin that has already experienced a big pump of 223%.

However, investors must also pay attention to the downside risks. $154 is currently the most critical support level, which has turned into support after breaking through the long-term downward resistance line. If Zcash can maintain this price level on a weekly basis, the breakout pattern will remain intact, and the upward trend will continue. However, if it falls below $154 and cannot quickly recover, it may indicate a failed breakout, and the price could fall back to the original consolidation range, which would be a dangerous signal.

In terms of trading strategy, conservative investors can wait for Zcash to pull back to the support zone around $200 before considering building positions, which can provide a better risk-reward ratio. Aggressive investors who are optimistic about the long-term narrative of Privacy Coin can build positions in batches at the current price level, but must set strict stop-loss orders below $154 to control downside risk. For investors who already hold ZEC, it may be wise to take partial profits in batches at $280 and $320, while retaining some positions to participate in the potential for a larger pump.

It is noteworthy that the comparison of the trends between Zcash and XRP provides an interesting perspective on the market. If the Privacy Coin narrative continues to ferment, it may attract funds that were originally allocated to established coins like XRP to flow towards ZEC, creating a rotation effect. This kind of sector rotation is common in Crypto Assets bull markets; when a sector or narrative begins to perform, funds flow from underperforming assets to hot assets. Investors can determine whether this rotation is occurring by comparing the relative strength of Zcash and XRP.

The Renaissance of Privacy Coins: Era Demand Drives Value Reassessment

The big pump of Zcash is not just an isolated price event; it may signify the revival of the entire Privacy Coin sector. For a long time, Privacy Coins have been on the fringes of the Crypto Assets market, facing stringent scrutiny from regulators and being delisted from many mainstream exchanges, resulting in persistently low market attention. However, Zcash's strong performance this time indicates that market sentiment may be undergoing a fundamental shift, with the Privacy Coin narrative moving from the margins to the mainstream.

The core factor driving this change is the increasing global concern over digital surveillance and privacy infringement. Governments around the world are accelerating the promotion of Central Bank Digital Currencies (CBDCs), which will grant them unprecedented financial monitoring capabilities. At the same time, the technology of blockchain analytics companies is continuously advancing, capable of tracking and analyzing the flow of funds on transparent blockchains like Bitcoin, which makes many large holders uneasy. In this context, the complete transaction invisibility offered by Zcash is no longer just a technical feature but has become a practical necessity.

If investors start to view privacy as a premium utility tool, just as they value the scarcity of Bitcoin, then ZEC could become one of the most asymmetric bets in this cycle. The term "asymmetric" refers to investment opportunities where the potential returns far exceed the potential risks. The process of Zcash quickly re-evaluating from a long-term undervalued state is a manifestation of such asymmetric opportunities. In contrast, while XRP also has upward potential, its valuation is already relatively reasonable, and the space for explosive growth may not be as significant as ZEC.

The revival of the Privacy Coin narrative resonates with broader social trends. In the context of Edward Snowden revealing large-scale surveillance programs, governments promoting digital IDs, and social media companies abusing user data, privacy has become one of the most important social issues of the 21st century. Crypto Assets were originally born out of a rebellion against centralized financial systems and government control, and privacy protection is a natural extension of this ideology. From this perspective, the value of Zcash lies not only in technological innovation but also in its embodiment of the core values of the crypto movement.

However, investors must also recognize the ongoing regulatory risks that Privacy Coins face. The hostile attitude of governments towards Privacy Coins is unlikely to change in the short term, and new restrictions may be introduced at any time. This regulatory uncertainty is a sword of Damocles hanging over all Privacy Coins and represents an additional risk that investors in Zcash must bear. A rational strategy is to consider ZEC as a satellite allocation in the portfolio rather than a core holding, participating in this high-risk, high-reward opportunity with limited funds. At the same time, it is essential to understand that whether the narrative of Privacy Coins can continue ultimately depends on the evolution of the global regulatory environment and society's recognition of the value of privacy.