Privacy became the most prominent theme in the cryptocurrency market during the fourth quarter of 2025. The need to be free from surveillance and regulation led to increased interest in cryptocurrency associated with this theme. Zcash (ZEC), which utilized state-of-the-art zk-SNARKS technology, led this charge.

Source: X

The demand for privacy coins such as Zcash, Monero, and Dash increased as a result of the intensification of regulations on privacy coins. Governments are forcing increased transparency, but the role of privacy coins is to ensure that their users’ anonymity is protected. All of this is a representation of the sentiment shift in the world of cryptocurrencies.

Also Read: Zcash (ZEC) Pullback Signals Buying Opportunity Ahead of $600 Resistance

ZEC Eyes Crucial Retest After Breakout

However, the crypto analyst, Batman, revealed that ZEC has broken out above major levels of resistance and has demonstrated renewed bullish strength in the privacy coin market. While it has taken several weeks for this breakout, it indicates a renewed level of confidence in the marketplace. Experts are now paying attention to a possible retest of the new support level, which corresponds to the 0.618 Fibonacci retracement level.

Source: X

If ZEC can hold this level of support, it could open the floodgates to further price gains. The confluence of the breakout confirmation with the support at a Fibonacci level makes this scenario very attractive. It looks like it may be time to take a wait-and-see approach when it comes to this retest.

Price Action, Market Sentiment, and Momentum Indicators

The Zcash price has recently fallen from $525 to $480, but it has begun to reverse. The RSI is currently standing at 53.18, which provides a neutral to bullish market condition. There is neither any pressure to oversell nor any pressure to overload. The ZEC has the potential to move up but is waiting for an RSI confirmation above 60.

Source: TradingView

The MACD reveals a positive histogram with a green bar, an indication of a bullish trend. Additionally, the MACD line (7.32789) is positioned above the signal line (22.44050). The confirmation of both indicators provides a basis for a potential increase in the price of ZEC since both indicators point to a positive sentiment for the token.

Also Read: Zcash Price Holds Bullish Structure as Bitwise Adds ZEC to ETF Lineup

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Filed under: Bitcoin - @ January 3, 2026 2:00 am