Zcash defies $230B crypto crash with 40% rally—But RSI warns of reversal risk

Key Takeaways

How did Zcash perform while other cryptocurrencies crashed?

Zcash gained 6.19% in 24 hours, making it the only other top-20 cryptocurrency in the green during a brutal selloff.

What technical warnings exist for Zcash’s rally?

The RSI indicates overbought conditions, suggesting high reversal risk.

While Bitcoin broke below $101,000 and Ethereum crashed 12%, one cryptocurrency defied the carnage.

Zcash surged 6.19% to $441.47, standing alone as the only other top-20 asset in the green during Monday’s brutal market wipeout. 

Tron Coin was the other asset, with an over 1% increase, to trade around $0.28.

The lone survivor

A glance at the top 20 shows uniform red. TRON gained 1.40% before reversing. Stellar climbed 1.39% but fell 15.19% over seven days. Dogecoin, Cardano, Hyperliquid, Chainlink, Sui, and Hedera all traded deep in negative territory.

Only Zcash shone green with a 6.19% daily gain and 40.28% weekly surge. The privacy-focused cryptocurrency extended a remarkable rally from $40 in August to current levels around $441, a 10x gain in roughly three months.

The Zcash privacy narrative

Zcash’s outperformance reflects renewed interest in privacy-focused cryptocurrencies. As regulatory scrutiny intensifies on transparent blockchains and surveillance concerns grow, traders are rotating capital toward coins that offer anonymous transactions. 

Zcash uses zero-knowledge proofs to shield transaction details while maintaining blockchain verification.

The privacy narrative gained momentum throughout October and November, with Zcash bucking the broader market’s weakness even as Bitcoin dominance reasserted itself.

Technical red flags mount

The celebration carries significant caveats. Zcash’s RSI stands at 79.14, indicating it is in deeply overbought territory. Readings above 70 typically signal exhaustion, and at 79, the indicator flashes bright red warnings.

Source: TradingView

The Ichimoku Cloud chart displays a classic parabolic blow-off top pattern. The price recently rejected the $480 highs and pulled back to $441, marking an 8% correction that may be just beginning.

Historical patterns show parabolic moves like this rarely sustain.

Key support sits around $400. If that breaks, Zcash could rapidly correct to $350-$380 as overbought conditions unwind. Resistance reformed at $480, with any recovery facing heavy supply from recent buyers looking to exit.

The Risk

Parabolic rallies feel unstoppable until they reverse. Zcash’s 10x gain in three months represents exactly the kind of momentum that attracts late buyers, and punishes them when exhaustion hits. 

While the privacy narrative remains valid, technical conditions suggest extreme caution at current levels.

Traders should watch the $400 support closely. A break below signals the party is over.