ZEC returns as risk-on crypto trade follows Iran ceasefire deal

ZCash (ZEC) was one of the coins that immediately responded to the news of a two-week ceasefire between the USA and Iran. ZEC rallied above $300, becoming one of the day’s top gainers. 

ZEC responded to the risk-on trade after BTC also recovered to the $72,000 range. The privacy coin peaked above $240 during the recent rally, adding over 21% in the past 24 hours. Volumes also expanded to a one-month peak of nearly $800M in the past day. 

Open interest on derivative markets also rose by 26% in the past day, with most of the activity concentrated on Binance. ZEC showed the crypto market was ready to pivot despite the months of bearish sentiment, boosting assets that showed a potential for strong directional moves. 

ZEC open interest is still below its levels at the end of 2025, standing at $386M. This time around, ZEC has a limited breakout compared to its record-breaking climb in November 2025. 

Is the ZEC rally sustainable? 

ZEC has raised some skepticism in the past months, as the late 2025 rally was heavily promoted by influencers. Later, some ZEC whales sold a part of their stake. ZEC went through dramatic price drops as well. 

Despite this, ZEC still has a community and the opportunity for short-term risk-on rallies. ZCash has a 0.5% mindshare, up by 25% in the past day. This level of exposure on social media remains higher compared to other altcoins and tokens. 

ZEC is still viewed with suspicion, and the current rally may be the result of a short squeeze. Based on the currently open short positions, ZEC can continue with its liquidations in the $330 range, but the rally may stall and face resistance. 

The last day led to $2.85M in short liquidations and may lead some traders to close their positions. 

The latest ZEC rally helped other privacy coins. XMR added another 3% to over $337. Smaller privacy coins were also in the green, boosted by the general crypto market recovery. 

ZCash shielding continues to grow

ZCash shielding continues to grow quietly, despite the slowdown of the influencer campaign. There are no signs of unshielding or selling, and the total shielded supply is up to a record of over 5.17M. 

ZCash mining is also near an all-time peak, unaffected by market swings. Despite this, the current rally may be rejected, and ZEC may return to its bearish structure. 

One of the narratives for ZEC was its usage in Solana DeFi. Currently, Solana-based DeFi is slowing down following the Drift Protocol hack, increasing user skepticism. 

ZEC will have to prove its presence as a risk-on trade, avoiding the fate of most altcoin and token projects. The privacy narrative has remained a key topic in the crypto space, even without the short-term hype.