Zcash Sinks 57% From Its Peak as Momentum Fades and Retail Interest Collapses
Zcash plunges 57% from its peak as liquidations, weak volumes and collapsing retail interest undermine one of 2025’s strongest rallies.
Zcash’s dramatic reversal has reshaped the outlook for one of the most explosive crypto rallies of the year. After reaching a peak of $700 in November, the privacy-focused token has now fallen 57%, including a steep 35% drop over the past week. The shift marks a sharp cooling of enthusiasm surrounding privacy tokens, which were among the first assets to be offloaded during the latest market downturn.
The decline accelerated as leveraged traders were forced out of their positions. CoinGlass data shows that Zcash experienced its fourth-largest liquidation spike only two days ago, erasing $22 million in long exposure. On November 27, an additional $18 million in long positions disappeared during another sharp sell-off. These consecutive liquidation events highlight how overstretched the market had become during ZEC’s ascent, with little capacity to absorb selling once momentum weakened.
The signs of fading strength appeared even before the collapse. Artemis data indicates that trading volumes were already lower when Zcash revisited the $700 level, compared with the earlier breakout to $648. This divergence suggested that buying conviction had started to erode, even as price action attempted to push higher. Volumes hit a 30-day low of $636 million on November 29 before showing a modest rebound, possibly as traders positioned around an important technical area.
Technicals reinforce the shift in sentiment. Zcash formed a double top at $700, a pattern widely viewed as a reliable early warning of exhaustion when it appears on daily charts. Once the structure broke, ZEC fell through the previously dependable $440 support and declined in five of the past six sessions. The next decisive zone sits near $300, a level that once acted as resistance and may now serve as support if the downward move continues.
Interestingly, the Relative Strength Index has not yet dipped into oversold territory. This is partly because ZEC recently experienced an extreme overbought reading of 88 during its rapid climb. The current drop may therefore reflect a broader return to long-term averages, especially as the token approaches its 200-day exponential moving average, a level frequently associated with mean-reversion phases.
Despite the sharp decline, the broader bullish structure has not been fully erased. If Zcash finds stability near $300 and trading volumes confirm a sustained reaction, the token could attempt to rebuild. However, a new push toward $700 appears unlikely in the near term, especially given the drop in retail participation.
Google Trends provides a telling indicator. Searches for “Zcash” have collapsed from a peak score of 100 on November 7 to only 11 today. The timeline aligns almost perfectly with the price cycle: ZEC topped when search interest was at its highest, formed a double top shortly after and then unraveled. Without renewed interest from retail traders, a rapid recovery seems improbable.
Even after this setback, Zcash remains one of the strongest performers of the year, still up roughly 480%. Yet the scale and speed of the recent decline suggest that the most aggressive phase of its rally may now be behind it.
