Zcash (ZEC) has recovered to roughly $1,140 on Monday after falling nearly 6% over the past seven days, with trading volume at approximately $1.4 billion—more than 7% of its circulating market capitalization.
The token met selling pressure near $1,300 as a deteriorating U.S. macroeconomic outlook weighed on the broader crypto market. A stable inflation report initially sparked a digital-asset rally on Friday, but those gains faded as market expectations for an interest-rate hike at the Federal Reserve’s next meeting climbed to nearly 90%.
The Federal Open Market Committee is scheduled to meet on September 16, and investors will monitor comments from Fed Chair Kevin Warsh. Inflation remains well above the central bank’s 2% target, while the White House continues to advocate for lower interest rates, creating uncertainty that may push crypto traders to reduce risk before the decision.
Despite the pullback, Zcash has gained about 116% in 2026, supported by its privacy technology. After an audit found a vulnerability that could have allowed attackers to mint unlimited ZEC, the community introduced the Ironwood vault, and millions of ZEC have since migrated from the previous Orchard vault. ZecHub data shows shielded transactions at their highest level in almost two years, representing 56% of blockchain activity.
Technically, a bearish divergence on the daily Relative Strength Index suggests weakening momentum. ZEC could retreat toward the $850 area before potentially resuming its longer-term advance. The token previously broke out of an ascending-triangle pattern with a target near $2,500, so a decline to $850 may represent a reset within the uptrend rather than a full bearish reversal. The immediate direction will likely depend on the Federal Reserve’s policy decision and the broader market reaction.
