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Zcash Price Falls to $550 as Traders Defend 33% Weekly Gain and Expect Another Breakout
On May 11, Zcash ($ZEC) dropped to $550 after a sharp rally, although the privacy-focused cryptocurrency still posted a 33% gain over the past seven days as renewed interest and ongoing debate fueled speculation about its future.
Key Takeaways:
- On May 11, Zcash ($ZEC) fell to $550 after a sharp surge but maintained its position as the leading privacy-focused cryptocurrency.
- Despite a 7% daily decline, $ZEC gained 33% over the past week following a $25 million funding round backed by firms such as a16z.
- Supporters expect a parabolic rally for $ZEC in 2026, while critics warn about liquidity concerns surrounding the shielded pool.
Zcash Pulls Back After Sharp Rally
Privacy coin Zcash ($ZEC) plunged to $550 on Monday, even as renewed conversations around privacy in crypto continued to fuel investor interest in the token.
Market data shows that after reaching a peak just below $640 on May 9, $ZEC retraced to $550 by 11:00 a.m. Eastern Time on May 11 before slightly recovering to around $555.
Despite falling nearly 7% over 24 hours, the pullback did not erase most of the gains accumulated since May 4, when the privacy-focused cryptocurrency initially surged from below $420 to $600 in less than a day.
Although the token briefly slipped back below $550 the following day, $ZEC has largely remained above that level since then, leading supporters to argue that the asset may be preparing for another parabolic rally similar to the one seen during the final quarter of 2025.
Even after the correction, market data indicates that the privacy-focused cryptocurrency still gained 33% over the past seven days.
The decline also pushed Zcash’s market capitalization slightly below $10 billion, although it remains the largest privacy-focused cryptocurrency by market value.
Renewed interest in Zcash followed a turbulent start to the year marked by mass resignations within the development team amid governance disputes with the Bootstrap board.
As previously reported by Bitcoin.com News, those departures shook the privacy-coin community and triggered a sharp sell-off in $ZEC as markets reacted to uncertainty surrounding the project’s future.
The sell-off pushed the cryptocurrency below the $400 level, where it remained until May 4.
The recovery in $ZEC was welcomed by Josh Swihart, founder of Zcash Open Development Lab, formerly known as Electric Coin Company. Swihart viewed the recent price action as validation of the protocol changes introduced in recent months.
He also encouraged investors to support the direction pursued by his development team, pointing to the $25 million in funding secured from a16z, Paradigm, Winklevoss Capital, Coinbase Ventures, Cypherpunk Technologies, and Maelstrom.
However, critics on social media revisited the controversy that triggered the mass resignations earlier this year.
According to one X user, the changes that caused the departures did not make $ZEC as private as Swihart and others claim.
“$ZEC isn’t truly private anyway if only 30% of the supply sits inside the shielded pool. The remaining 70% being transparent is enough to gather data about specific shielded deposits using ‘turnstile crossings,’ which blockchain analytics firms use to trace flows,” the user argued.
Other critics insist that the “sudden” vertical price movements in $ZEC are not signs of strength but rather “warning shots.”
See also: "Bitcoin Stabilizes Near $81K Amid Rising Tensions With Iran"
