Zcash Fell 20% Overnight: Is This the Start of a Wider Collapse?

The privacy coin market just got beaten. Hard.

Zcash is now trading at $323, having fallen over 20% in the past day. One of crypto’s most recognizable privacy coins lost a fifth of its value while most people were sleeping.

Walk into any crypto trading Discord right now, and you’ll see panic. Traders who bought ZEC above $400 are watching their portfolios bleed. Long positions are getting liquidated left and right. And the question everyone’s asking? We might not be done dropping yet.

Also Read: Why Is ZEC Falling? Is Zcash Giving A Retest For $1000 Target?

What Actually Went Down?

Here’s the situation. BTC slipped under $85,000 yesterday. ETH couldn’t keep its head above $3,000. Within hours, every chart was bleeding red. But privacy coins took the worst beating of the bunch.

Exchange data shows 221,000 traders got wiped out in a single 24-hour period. Forced liquidations totaled $638 million across platforms. Those kinds of numbers tell you one thing: way too many people were betting with borrowed money.

Now here’s the part that really spooked the market. Some whale holding wallet 0xCF90 opened a massive long position about nine days back. We’re talking 20,000+ ZEC worth $7.3 million. Fast forward to yesterday, and this person was staring at a $4 million hole in their account. They dumped another $1.5 million USDC into their exchange account just trying to stay alive.

When big players start scrambling like that, retail follows. Fear spreads faster than any news headline.

Why This Crash Hit Different?

This wasn’t your typical red day. Multiple problems stacked up at the exact wrong time.

BTC and ETH led everything lower. That’s just how this market works: when the giants stumble, smaller coins get trampled. But what happened to privacy coins yesterday felt excessive even by crypto standards.

ZEC had been holding that $480-$500 zone for weeks. Traders built positions around it. Then it just… broke. Once the price punched through, automated systems started firing off sell orders. Each wave of selling triggered more selling.

Yesterday’s Fear and Greed reading hit 20. That’s deep into panic mode. When sentiment gets this dark, people bail on anything that looks remotely risky. Privacy coins already carry extra uncertainty, so they’re typically first out the door during these moments.

Reading the Technical Picture

Look at any ZEC chart from the past month. You’ll see prices making lower peaks each time it tries to rally. Lower lows follow. That pattern doesn’t lie; sellers have been gaining ground steadily.

The MACD keeps printing bigger red bars. Momentum has completely flipped bearish.

Trading at $326 right now puts ZEC near a level that should offer some cushion around $320-$330. But lately? These supposed support zones have been paper-thin. They break faster than anyone expects.

Any legitimate turnaround needs to see price pushback over $390 first. Until that happens, every small rally just becomes another chance for traders to exit their positions. Green candles don’t last because trust is gone.

Also Read: Zcash (ZEC) Price Prediction 2025-2028: Comprehensive Forecast

Three Scenarios Playing Out

Talk to enough people tracking this, and you’ll hear different takes. But a few themes keep coming up.

Near term, we could get a pop. When things get this oversold, some snapback usually happens. If we see that, ZEC probably tests somewhere between $400 and $450. Just don’t confuse a relief bounce with any kind of trend change. Shorts are taking profit off the table, nothing more.

Looking out a few months? This could get messier. Plenty of people watching this think ZEC drifts down toward $200 if it can’t get back above $450 soon. Anyone still holding from higher prices would feel that.

Way out, like late 2025, maybe 2026, things might look different. Privacy coins have this habit of coming back to life after being destroyed. Find a real bottom somewhere around $200-$250, and you might eventually see a run back toward $400 or $600. That’s assuming crypto as a whole finds its footing again.

Fresh Competition Making Moves

While the old guard struggles, newer stuff is catching attention. GhostPay on Solana jumped 33% yesterday as ZEC cratered. Traders are chasing whatever looks fresh and exciting.

Monero’s been outrunning Zcash pretty hard lately too. XMR was up 16% last month while ZEC dropped 20%. These two usually track each other, so when they split this much, it means something. Some people prefer how Monero does privacy by default instead of making it optional.

Regulators haven’t made things easier either. Privacy coins keep getting kicked off exchanges in various places. Less liquidity means bigger swings when selling pressure hits.

Anything Looking Positive?

Slim pickings here, but a couple of things exist.

Grayscale wants to turn its Zcash Trust into a proper ETF. Get that approved, and you’d see institutional dollars flow in. The problem is, the SEC hasn’t exactly been rushing to greenlight crypto ETFs beyond BTC and ETH. So don’t hold your breath.

There’s also the quantum computing angle. ZEC’s cryptography supposedly handles quantum threats better than most chains. Maybe that matters someday when quantum machines get serious. Right now, the market couldn’t care less.

Also Read: ZEC Pumped 440% In Oct – 5 Privacy Coins With 5X Potential In Nov 2025

Practical Next Steps

Thinking about buying this dip? Hold off until you see real confirmation. Catching falling assets is how accounts get destroyed. Wait until ZEC proves it can actually hold some ground and build momentum upward before putting money in.

Already stuck holding? Your options aren’t great. Sell now, and you’re accepting the loss. Hold through, and you might watch it sink further. Setting stop losses under the key levels and letting the market make the decision for you might be the smartest play.

Die-hard believers in privacy tech could view these prices as an entry point. But you’d better have real conviction and be ready for more pain before any payoff.

The Real Takeaway

What just happened wasn’t standard market noise. Critical levels gave way, momentum died out, and fear took the driver’s seat. Whether we’re looking at the start of a prolonged slide or just a sharp but temporary shake depends heavily on what BTC and ETH do next.

The big two find stability, and coins like ZEC get a chance to catch their breath. More selling in the major coins and privacy assets will keep taking damage. There are still leveraged positions getting flushed out of the system, and that process never looks pretty while it’s happening.

Right now, protecting capital matters more than trying to nail the perfect entry. Pay attention to what price action is telling you instead of fighting it.

What made ZEC drop so hard overnight?
Several things converged at once. The major cryptocurrencies sold off sharply, over $638 million in leveraged bets got wiped out across exchanges, and important price levels that traders relied on broke down. One particularly large trader lost more than $4 million on their ZEC position, which sent ripples of fear through the market.

Can we expect ZEC to bounce back?
Bounces happen, but they take time and the right conditions. You might see some upward movement in the near term, but sustained gains need the wider market to find stability first. Technical analysts tracking this expect weakness to continue unless the price manages to reclaim the $390 level.

Where does ZEC stand versus other privacy tokens?
The comparison isn’t flattering. Monero posted 16% gains while ZEC shed 20%. Projects like GhostPay are pulling money away from older privacy coins. The competitive landscape is getting tougher for established names.

What levels matter most for trading decisions?
If you’re looking to buy, wait for confirmation above $390 before jumping in. On the sell side, watch that $320 area for near-term support. If things keep deteriorating, $200 becomes a realistic target worth monitoring.

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Disclaimer:

Look, we’re just journalists reporting the news here, not your financial advisors. Everything you read above is for information purposes only. Crypto is wild, unpredictable, and can absolutely wreck your savings if you’re not careful. Never invest money you can’t afford to lose. Seriously, we mean it. Do your own research, talk to actual licensed financial professionals, and remember that past performance means absolutely nothing when it comes to future results. The crypto market can turn on a dime, and what’s hot today might be toast tomorrow. We’re not responsible for your investment decisions, good or bad. Trade smart, stay safe, and don’t bet the farm on anything you read on the internet, including this article.