Zcash price fell over 30% this month as the crypto market remained in a downtrend amid geopolitical concerns, including trade war tensions. However, a large bullish reversal pattern has formed, suggesting a potential rebound could be in the cards.

According to data from crypto.news, Zcash (ZEC) price fell to an 8-week low of $326 on Monday, Jan. 26, before backtracking some of its losses as it hovered around $368 at press time.

Zcash price has been on a downtrend since early January as supporters lost confidence in the privacy protocol’s long-term roadmap after an internal dispute led to the resignation of the entire development team at the Electric Coin Company (ECC), which developed Zcash over the last decade. The drama led investors to rotate capital to other established privacy coins such as Monero (XMR) and Dash (DASH) as they awaited further clarity on the network’s governance.

Global macro forces have also kept Zcash price suppressed in recent sessions. Notably, U.S. President Donald Trump’s renewed tariff threats on key trading partners are forcing investors to turn away from risk assets towards traditional safe havens such as gold and silver. Precious metals have continued to outperform risk assets like Bitcoin in 2026.

Gold surged to an all-time high of $5,100 on Monday, up nearly 17.5% in January, while silver has similarly rallied to a new high of $110, up 57%. In contrast, major cryptocurrencies have posted noticeable losses during the same period.

However, the Zcash rebound today was part of a larger recovery across the privacy coin market, suggesting that the privacy solution narrative seems to be gaining back steam as geopolitical tensions heighten. As governments clamp down on financial surveillance, the demand for privacy coins is resurfacing.

Zcash price was up nearly 6% today, catching a bid alongside its peers as speculative dip-buyers began to see value in the oversold privacy sector.

Even after today’s rebound, the altcoin remains 31% lower than its Jan. 1 high of $533 and 49% beneath its November high last year.

A key catalyst that could support more recovery is the rising amount of shielded supply on the Zcash network. According to the Zcash dashboard, the total supply of shielded tokens on the platform has surpassed 16.5 million, marking over 30% of the total circulating supply at the time of writing, worth roughly $1.85 billion.

A jump in shielded activity means more adoption and increased trust from users, which in turn means stronger fundamental utility for the ZEC token.

Zcash price analysis

On the daily chart, Zcash price has formed a multi-month bullish pennant pattern, a formation that is typically considered a continuation signal when it appears during an established uptrend.

Zcash price has formed a multi-month bullish pennant pattern on the daily chart — Jan. 27 | Source: crypto.news

A breakout from this pattern could spark a parabolic move for Zcash price over the coming months, a trend often followed after breakouts from such a robust technical structure.

For Zcash, a strong upside move above the $400 psychological resistance level could trigger a rally to as high as $700, a target calculated by adding the height of the preceding flagpole to the price at which the breakout occurs.

At press time, this target was still 90% above the current price.

Momentum indicators like the MACD and RSI showed that bulls had the strength needed to trigger the breakout. Notably, the MACD lines look poised for a bullish crossover soon, while the RSI has rebounded from near oversold levels closer to the neutral threshold.

On the bearish side, a drop below its December low of $310 would invalidate the bullish forecast and could open the door to more downside ahead.