Zcash Rally Passes $1,500 as Liquidation Risks Rise

Zcash (ZEC) extended its powerful rally, briefly breaking above $1,500 before trading near $1,470. ZEC has gained about 190% in one month and roughly 2,500% over the past year, reaching its highest level in about a decade. Earlier momentum was supported by a governance proposal to reduce block intervals from 75 seconds to 25 seconds, potentially improving transaction confirmation speeds, while the planned halving remains part of Zcash’s issuance model. Analysts have raised targets ranging from $1,800 to $2,000, with some forecasting moves above $5,000 or even $14,000 if Bitcoin reaches a new record high. However, bearish positioning is increasing. Traders have opened large ZEC short positions, including an $18.3 million trade reportedly down $7.66 million and facing liquidation near $1,551. Another major short worth about $51.5 million has a liquidation level near $2,631. Zcash momentum remains bullish, but elevated open interest, fading short-squeeze support, exchange inflows above outflows, an RSI above 70 and widespread fear of missing out point to high pullback risk. Traders should be cautious with leverage as crowded positions could trigger sharp liquidations in either direction.