Zcash Rallies 1,000% YTD, Drops 24%: Watch Funding & MFI

Zcash (ZEC) has delivered astonishing gains, surging 700% in late 2025 and over 1,000% year-to-date before a recent 24% correction as the broader crypto market fell below $2.9 trillion. On-chain data show shielded pool assets jumped from 2.66 million to 4.98 million ZEC and weekly private transactions leaped from 30–40 k to 460 k, reflecting growing demand for privacy. Derivatives markets drove Zcash volatility: futures open interest peaked at $1.38 billion before sliding to $861.5 million, with $236.6 million flowing out and $32.95 million in forced liquidations. The OI-weighted funding rate swung from ‑0.4192% (triggering $51 million in short squeezes) to +0.0195%, hinting at a potential rebound. Despite the pullback, spot retail investors bought $72 million in ZEC, signalling bullish sentiment. The Money Flow Index (MFI) remains above 50, marking a demand zone between $440 and $507, while the Chaikin Money Flow (CMF) shows rising selling pressure that could push prices lower if it turns negative. Traders should monitor Zcash funding rates, MFI and CMF alongside support levels in the $440–$507 range. A sustained positive funding rate and MFI above 50 may fuel a reset and bullish continuation, whereas a negative CMF or reversal in funding dynamics could trigger deeper corrections.