Privacy coin Zcash has indeed performed remarkably this year. The entire privacy sector's annualized return in 2025 exceeds 250%, compared to the 62% decline in the memecoin sector, making the difference even more obvious. In this sector rotation context, ZEC's technical outlook is particularly worth paying attention to.

The most straightforward data is ZEC's performance relative to Bitcoin—an increase of up to 666%, hitting a new all-time high. This not only indicates that the market is re-pricing privacy attributes, but from a technical chart perspective, the upward trend line has been in effect since the beginning of the year, continuously supporting the price to move upward. Investors' recognition is not just lip service; on-chain data proves it.

Currently, the shielded ZEC supply has surpassed 5 million coins, nearly doubling in a few months, accounting for 29% of the circulating supply. The number of shielded transactions is also continuously hitting new highs. These details are very critical—they indicate that ZEC's privacy features are not just talk on paper; real users are using them, not just hype. This is the true support for the price.

Technical signals are a bit more complex. The MACD on the daily chart maintains a golden cross, but the upward momentum is clearly waning. The RSI once broke above 70, but now there are signs of bearish divergence. These mismatched signals warrant attention—they may mean a short-term correction is coming, and the price needs to digest the previous gains before continuing upward.