Zcash (ZEC) Flashes Fresh Buy Signal; Is $642 the Next Stop?

Despite skepticism after its rally, ZEC could climb higher, according to one analyst.

Zcash (ZEC) has surged nearly 1,000% over the past year and is up almost 50% over the past month alone.

The privacy-focused crypto asset is flashing another bullish signal after an already remarkable run in 2026, largely defying the wider market’s struggles.

Another Bullish Signal

According to the latest findings from crypto analyst Ali Martinez, the TD Sequential indicator on a 12-hour chart has flashed a buy signal for ZEC, suggesting the rally may not be over yet. Martinez believes that a move toward $642 remains possible as long as the token continues to hold above the $500 level.

The latest signal comes after a period of intense volatility and growing market attention surrounding the asset. Earlier, blockchain analytics platform Santiment identified ZEC as the dominant topic across crypto social media, recording seven repeat spikes in social dominance during the week and reaching a peak social dominance score of 10.02 on May 20.

The firm noted that sentiment around the asset shifted sharply over the course of the rally, moving from positive to negative after the initial surge. Santiment linked the May 20 spike to a powerful short squeeze that sent ZEC from around $568 to an intraday high near $686 in roughly six hours, a gain of about 17%. The move reportedly triggered around $28 million in liquidations and pushed the ZEC’s market capitalization above $11 billion.

Discussion online was largely driven by claims that the rally was fueled by aggressive positioning and thin liquidity, growing excitement around Grayscale’s filing to convert its Zcash Trust into a spot ETF, and continued interest in privacy-coin investment narratives. While sentiment was initially boosted by the short squeeze and ETF-related optimism, it later turned negative as some market participants began to question the move’s sustainability and rotated into other assets.

As a result, Santiment described ZEC as one of the most consistently active and volatile assets of 2026, while adding that “signals around it tend to be tradable in either direction rather than directional on their own.”

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Security Fixes

Beyond market activity, the Zcash Foundation last week released Zebra 4.5.0 and urged node operators to upgrade immediately. The update addressed multiple security vulnerabilities across the network, including a consensus-related issue and several bugs that could affect node operations.

It also introduced support for mining directly to a shielded address and included broader security and reliability improvements.