Zcash Price Forecast: ZEC Eyes $600 Breakout as Whales Tighten Supply

As of Jan. 6, Zcash (ZEC) was consolidating near the $510 level after rebounding by over 70% from its December lows.

The move came amid an improving crypto market structure and fresh optimism sparked by a new investment product tied to ZEC.

Now, the privacy-focused cryptocurrency is eyeing an extended rally toward $600, led by a mix of solid technical and fundamental catalysts.

Institutional and Whale Accumulation Boost ZEC’s Bullish Outlook

Large holders have played a key role, with whale holdings increasing by around 50% and the top 100 addresses now controlling 68% of the supply, hinting at a supply crunch against rising ZEC demand led by an ongoing privacy narrative.

Notable institutional interest includes Winklevoss-backed Cypherpunk Holdings aiming for 5% of ZEC’s supply (already at 1.5% with an average entry around $280) and proposals to convert Grayscale’s Zcash Trust into a spot ETF.

High-profile endorsements, such as from Zcash co-founder Eli Ben-Sasson, have amplified this, emphasizing ZEC’s scarcity and utility amid a pro-crypto U.S. regulatory environment under the Donald Trump administration.

The rise of ZEC and Privacy:

As co-founder of @Zcash I’ve been following it since inception.
(note: I later on co-founded @Starknet, and today I am admiring Zcash from afar)
For the past 3 years or so, ZEC price was in the $20-$50 area, and the chain was not even on the top 100…

— Eli Ben-Sasson | Starknet.io (@EliBenSasson) December 28, 2025

ZEC’s Bull Flag Structure Points to $600 Breakout Scenario

From a technical perspective, Zcash’s four-hour chart shows a textbook bull flag formation developing after its late-December rally.

Following a strong impulse move from the $380–$400 zone, ZEC entered a tight consolidation phase, carving out lower highs against a gently rising support line. This structure reflects controlled profit-taking rather than aggressive distribution.

Importantly, price continues to hold above its rising trendline and key moving averages, suggesting buyers remain in control of the broader structure. Volume has compressed during the consolidation, another characteristic consistent with bull flags.

If ZEC breaks decisively above the flag’s upper boundary near $520–$530, the pattern’s measured move projects an upside target in the $580–$600 range. That zone also aligns with prior Fibonacci resistance visible on the chart, reinforcing its technical significance.