Will Zcash's ZEC Reach $500 or Higher Before 2026?

Zcash has shown a significant recovery, climbing by 10.29% in the past 24 hours to surpass $425, marking a 41.50% increase from its lows of about $300 just a week ago.

Key Takeaways

ZEC is aiming for the $500 mark, with double-bottom formations and whale accumulation contributing to its growth.
However, bear-flag risks persist, as the overbought RSI suggests a possible pullback toward the $260–$280 range.

The recent surge has led some analysts to predict that Zcash might continue its rally, potentially reaching or surpassing the $500 level soon.

Will Zcash's ZEC return to $500 or higher before 2026?

Can Zcash Overcome Psychological Resistance?

Double Bottom Pattern and the Path to $500

Trader Goomba has pointed out that Zcash's recent swing lows may represent a potential double-bottom pattern. This pattern emerged in the $300–$310 range, where ZEC showed two similar low points within a short period. The breakout above the interim resistance at around $380 is what the trader considers a neckline breakout.

ZEC/USDT four-hour price chart. Source: TradingView/Goomba

This formation suggests a price target between $480 and $500, coinciding with a previous supply zone. Goomba emphasized that this structure remains valid as long as ZEC stays above the reclaimed neckline level.

Whale Accumulation and Selling Pressure

During the latest rally, ZEC's retail holders (those with $0–$1,000) and mid-sized traders (those with $1,000–$100,000) collectively reduced their net exposure by over $30 million, as noted by trader Ardi.

ZEC/USDT hourly chart. Source: TradingView/Ardi

In contrast, larger whale accounts (holding between $100,000 and $10 million) increased their positions by over $100 million during the same timeframe, indicating a divergence in market behavior. Smaller investors seem to have sold into the rally, while larger investors are building their positions, which could support a continued rebound towards the $500 target.

Potential Bear Flag Risks

Despite the recent rebound, Zcash's growth is occurring within what appears to be a classic bear flag pattern. This pattern typically represents a weakening channel following a steep sell-off in November. Historically, such rising channels have resolved downwards. ZEC's inability to maintain levels above the flag's upper trendline suggests that sellers may be regaining control.

ZEC/USDT four-hour price chart. Source: TradingView

Moreover, ZEC has struggled to break above the 200-day exponential moving average, reinforcing a bearish outlook. The relative strength index (RSI) also rose above the overbought level of 70, a region where momentum often diminishes.

Overall, these indications suggest that a breakdown from the bear flag could lead to a price move toward the $260–$280 range, approximately 35% lower than current prices.