$ZEC (Zcash) Why has it been continuously declining
Since reaching a peak of $750 in November 2025, it has continued to decline, with a cumulative drop of about 30%. The core reasons are multiple factors such as the cooling of previous speculation, technical and demand obstacles, and regulatory pressure, as detailed below:
1. The cooling of previous speculation has triggered profit-taking and concerns about raising and unloading: Since late September, ZEC surged by 1500%, with the rise largely relying on paid advertising promotions and false high price predictions among other speculative tactics. As marketing hype cools down, concerns about "raising and unloading" have led many investors to take profits, and the futures and spot markets, having overheated in prior retail trading volume, have also triggered a correction, evident in the decline of open futures contracts reflecting traders reducing risk capital.
2. Dual fatigue in technical patterns and on-chain demand: On the four-hour chart, ZEC is in a symmetrical triangle consolidation pattern, and the overall cryptocurrency market is weak, with a high probability of a downward breakout on the technical front. Analysts have even warned of a potential 50% drop. On-chain data is also not optimistic; after peaking on November 4, the number of ZEC in the Orchard shielded pool has stabilized, while the Sapling pool continues to shrink, reflecting a decrease in the market's real demand for ZEC.
3. Continuous regulatory pressure on privacy coin attributes: The transaction anonymity brought by ZEC's zero-knowledge proof technology conflicts with the global trend of strengthening anti-money laundering and anti-terrorism financing regulations. Several countries have implemented restrictions or bans on trading privacy coins, compressing its market space, and regulatory uncertainty continues to undermine investor and user confidence.
4. Competitive pressure in the cryptocurrency market is squeezing survival space: Monero and other similar privacy coins have an advantage in user base, while mainstream public chains like Ethereum are continuously upgrading privacy technologies. However, ZEC has performed moderately in market promotion and user expansion, with a high technical threshold making it difficult for ordinary users to understand and use, leading to its market share being continuously eroded and a lack of upward price momentum.
