Zcash (ZEC) experienced a 24% price drop amid a broader market slip below $2.9 trillion, driven by $236.6 million derivatives outflows and declining open interest, despite $72 million in spot retail accumulation signaling potential undervaluation.
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Spot accumulation hit $72 million, indicating retail investors buying the dip and viewing ZEC as undervalued after its 1,000% year-to-date gains.
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Derivatives market saw $236.6 million outflows, with open interest dropping to $861.5 million, increasing selling pressure.
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Money Flow Index above 50 and positive funding rates at 0.0195% suggest emerging capital inflows and a possible rebound.
Discover why Zcash ZEC price declined 24% despite retail buying—explore spot inflows, derivatives pressure, and rebound signals for privacy coin investors in 2025. Stay informed on crypto trends.
What caused the recent Zcash ZEC price decline?
Zcash (ZEC), the prominent privacy-focused cryptocurrency, saw its price fall 24% in a single day as the overall crypto market dipped below $2.9 trillion. This decline, marking one of the sharpest among major assets, stemmed primarily from heavy selling in the derivatives market, including a $236.6 million outflow and open interest reduction to $861.5 million. Despite this, spot market activity showed resilience with $72 million in net accumulation by retail investors.
How is retail accumulation countering the ZEC downturn?
Retail investors have stepped up during the ZEC price decline, accumulating $72 million worth of the token on spot exchanges, according to data from CoinGlass. This buying activity reflects a perception of undervaluation, especially given ZEC’s impressive over 1,000% year-to-date performance. Such inflows often precede recoveries, as investors capitalize on dips in privacy coins like ZEC, which prioritize transaction anonymity through zk-SNARKs technology. Experts note that this level of spot demand can stabilize prices amid volatility.
Source: CoinGlass
In historical contexts, similar spot accumulations during downturns have supported ZEC’s recovery, underscoring the token’s appeal in privacy-centric blockchain applications. This data aligns with analyses from platforms like CoinGlass, highlighting sustained interest from individual traders.
Frequently Asked Questions
Why did Zcash ZEC experience a 24% drop in 2025?
The ZEC price decline resulted from $236.6 million in derivatives outflows and open interest falling to $861.5 million, as reported by CoinGlass. This created significant selling pressure amid market-wide uncertainty, leading to $32.95 million in liquidations affecting both long and short positions. Broader crypto market contraction below $2.9 trillion amplified the impact on privacy tokens like ZEC.
Could ZEC rebound soon after this price decline?
Signs point to a potential ZEC rebound, with the Money Flow Index rising above 50 and funding rates shifting positive to 0.0195%. These indicators suggest increasing capital inflows and reduced bearish sentiment, potentially targeting the $507-$440 demand zone. Retail accumulation of $72 million further supports this outlook for the privacy coin.
Key Takeaways
- Retail accumulation persists: $72 million in spot inflows show investors buying the ZEC dip, viewing it as undervalued post-1,000% yearly gains.
- Derivatives drive pressure: $236.6 million outflows and $861.5 million open interest decline fueled the 24% drop and $32.95 million liquidations.
- Rebound signals emerge: Positive MFI, funding rates, and spot demand indicate the pullback may be temporary, eyeing higher price zones.
Source: TradingView
Technical analysis reveals a mixed picture for ZEC. The Money Flow Index remains above the key 50 level, signaling ongoing capital inflows that could bolster demand. However, the Chaikin Money Flow is edging toward negative territory, warning of potential increased selling if it breaches zero. Data from TradingView supports this, showing ZEC hovering near a critical support zone of $507 to $440, where historical rebounds have occurred.
Source: CoinGlass
The derivatives sector has been the epicenter of the ZEC price decline, with open interest plummeting and funding rates flipping positive. This $236.6 million outflow reflects trader caution, leading to widespread liquidations. Yet, the positive funding rate of 0.0195% hints at shifting dynamics, where longs may soon dominate.
Source: CoinGlass
Conclusion
The Zcash ZEC price decline highlights the volatility in privacy coins amid derivatives-driven pressure, yet robust spot accumulation of $72 million and positive technical signals like the Money Flow Index point to underlying strength. As the market stabilizes below $2.9 trillion, investors should monitor the $507-$440 zone for rebound opportunities. With ZEC’s privacy features gaining traction, future developments could drive renewed growth—consider tracking these metrics for informed decisions in the evolving crypto landscape.
