Zcash (ZEC) is witnessing a powerful rebound as buyers reclaim key technical levels and major regulatory headwinds dissipate. The SEC has officially closed its investigation into the Zcash Foundation without any fines or penalties, removing a legal overhang that had persisted since August 2023. At the same time, Grayscale is advancing plans to convert its $150 million Zcash Trust into a spot ETF, attracting fresh institutional attention. The combination triggered a double‑digit price surge, with ZEC trading around $676.31, up 2.67% in the last day and outperforming Bitcoin.
Derivatives data underscored the momentum shift: nearly $26.5 million of the $28.25 million in liquidations came from short positions, and open interest jumped 38%, suggesting a massive short squeeze. Spot inflow data from Coinglass showed accumulation clusters returning, while market capitalization stabilized after a prolonged corrective phase. The asset had reclaimed both the 9 EMA and 50 SMA, forming a rounded bottom structure that traders often interpret as an early recovery signal.
Institutional accumulation is adding further legitimacy. Multicoin Capital confirmed a long‑term Zcash position, and Cypherpunk Technologies increased its holdings to over 314,000 ZEC. The Zcash Foundation’s Q1 2026 treasury report revealed $36.7 million in reserves, including 85,000 ZEC worth about $21.2 million, signaling operational health despite past internal challenges.
Technically, however, the $560–$580 neckline zone and the $680–$750 high‑timeframe resistance remain critical. Analyst Crypto Patel warned that the same $700 region previously triggered a 74% crash from $750 to $185. A decisive close above $760 on high timeframes would invalidate the bearish outlook, potentially opening the path toward $1,000. In the short term, volume expansion near resistance will determine whether the rally evolves into a full reversal or fades as a short‑liquidation‑driven bounce.
