Zcash (ZEC) Rebounds Above Key Support After Long Squeeze—Is $600 Back in Play?

The Zcash (ZEC) price has staged an impressive rebound after one of its sharpest sell-offs in recent months. The privacy-focused cryptocurrency briefly plunged below a critical support region and fell toward the $300 mark before buyers stepped in aggressively, pushing the price back above $420 within a matter of days.

The recovery follows a period of intense volatility that wiped out a significant portion of leveraged positions across the derivatives market. With ZEC reclaiming key support levels and sentiment beginning to stabilize, attention is now turning to whether the recent correction has created the foundation for another rally attempt.

Zcash Price Defends a Critical Support Zone

The latest sell-off sent ZEC crashing below a major support area near $390-$400, a region that has repeatedly acted as an important pivot point over the past year. The daily chart shows a massive downside wick followed by an equally aggressive rebound, indicating that demand remains active around lower price levels. Volume also surged during the volatility, confirming that the move attracted significant market participation rather than occurring in thin liquidity conditions.

The recent rise has pushed the price beyond the crucial 200-day MA, while the bulls are trying hard to transform this range into a strong base. Besides, the RSI has triggered a rebound from the lower threshold but remains within a descending range. Hence, keeping the possibility of an extended bearish action. For now, the $390-$400 area remains the most important level on the chart. Holding above this zone keeps the bullish recovery scenario intact. 

Open Interest and Funding Rates Point to a Healthy Reset

Open Interest, which measures the total value of outstanding futures contracts, has fallen dramatically over the past month. Data shows Open Interest dropped from nearly $800 million to approximately $418 million during the latest correction, indicating that a large number of leveraged positions were wiped out or closed.

Despite the volatility, funding rates have remained relatively stable and slightly positive. This suggests that while excessive leverage was flushed from the market, traders have not broadly shifted to a bearish outlook. The combination of collapsing Open Interest and resilient funding rates points to a large-scale leverage reset rather than a structural trend reversal. 

ZEC Price Prediction: Can Zcash Rally Toward $600?

The Zcash price appears to have emerged from a significant leverage-driven washout after a sharp sell-off triggered widespread liquidations across the futures market. The recovery remains constructive as long as the ZEC price continues to trade above the $390-$400 support zone. The first challenge for bulls lies near the $450 resistance region. A decisive breakout above this level would confirm renewed momentum and increase the probability of a move toward $550.

Beyond that, the next major target sits near $650, where previous rallies encountered strong selling pressure. However, the bullish outlook depends heavily on maintaining current support levels. If ZEC loses the $390-$400 zone once again, the market could revisit the $350 area, followed by the recent low near $304.