Zcash's 1500% Price Rally Faces 'Violent End' Warnings Amid Record Open Interest

Zcash (ZEC) has experienced a staggering price surge, skyrocketing approximately 1,500% over the past two months to reach $750—its highest level since January 2018. This parabolic advance was fueled by endorsements from prominent crypto figures, including Naval Ravikant and Arthur Hayes, with Hayes projecting ZEC to hit $1,000 in 2025 and $10,000 in the long term.

However, technical indicators signal significant risks. ZEC's weekly relative strength index (RSI) hit a record 94.24, indicating extreme overbought conditions that have persisted since late September—the longest such period in Zcash history. Analysts like Altcoin Sherpa warn of a violent end, labeling it a great short, while traders Edward Morra and DarkSide predict a drop to $500 in November from current prices above $600.

Adding to the bullish momentum, ZEC's open interest surged 21.02% in 24 hours to a record $1.13 billion, with a long-to-short ratio of 1.06 reflecting trader optimism. The privacy-focused coin, launched in 2016 as a Bitcoin fork, now sees over 86% of daily volume from shielded transactions, with its shielded pool reaching 4.9 million ZEC—the largest ever.

Despite the rally, caution prevails due to overheating signals, such as CryptoQuant's Spot Volume Bubble Map showing the most severe red cluster on record. If support holds around the 20-week exponential moving average near $230, ZEC could rebound toward $900–$1,000, aligning with Hayes' forecast.