Zcash Price Forecast: Can ZEC Hold Above $350 After a 500% Monthly Surge?

Zcash (ZEC)) surged by over 30% on Sunday to reach almost $360, its highest level since May 2021.

The privacy-focused cryptocurrency rose alongside the broader crypto market rally as traders’ attention turned to a new breakthrough in the US-China trade talks and rising odds of a rate cut in November. Bitcoin (BTC) rose above $110,000.

Still, ZEC emerged as a standout performer, hinting at a growing risk appetite among crypto traders for altcoins with prevailing upside momentum. Zcash has surged by more than 500% in the past month.

But can it continue rallying further? Let’s examine.

ZEC Most Overbought on Record: Correction Expected

Zcash’s latest weekly relative strength index (RSI) reading near 88.9 signals one of its most overbought levels in history, even higher than during its 2021 and 2017 peaks.

Such extreme momentum often precedes short-term corrections as traders begin to take profits. Technically, the nearest downside target lies around $220, coinciding with the 0.236 Fibonacci retracement level from the recent $18.95–$900 swing.

A pullback toward this zone would allow the RSI to cool off and reestablish a healthier uptrend structure before any renewed push higher. Still, as long as ZEC remains above the $200–$220 support area, its broader bullish bias likely remains intact.

As covered, Zcash is painting a cup-and-handle pattern with a $400 price target.

Liquidation Clusters Risks Short Squeeze Toward $400

Zcash’s Binance liquidation heatmap highlights a key short liquidation cluster near $362.22, containing roughly $1.86 million in short positions and $5.40 million cumulatively.

This level, only a few dollars away from hitting, acts as a magnet zone, where a break above could trigger a short squeeze, forcing bearish traders to buy back their positions, and propel ZEC toward the $400 psychological level.

On the flip side, a notable long liquidation cluster sits around $325, totaling $1.84 million with $4.30 million in cumulative long exposure. A dip below this region could intensify downward pressure.

For now, ZEC remains closer to the upper liquidity pocket, suggesting that momentum traders may attempt to drive prices higher to flush remaining shorts before any significant pullback.