Zcash Rebounds 3% as SEC Closes Two-Year Investigation Into Privacy Coin
Zcash (ZEC), a cryptocurrency that focuses on privacy, is worth about $427 right now. It has gone up over 3% in the last 24 hours. This is
Quick overview
- Zcash (ZEC) is currently valued at approximately $427, having increased over 3% in the last 24 hours due to the conclusion of an SEC inquiry.
- The SEC's decision not to pursue enforcement actions against Zcash marks a significant milestone for the privacy coin sector and may influence future regulatory approaches.
- ZEC's price is stabilizing around the $400 support level, with resistance forming between $440 and $450, indicating cautious optimism for future price movements.
- Despite recent improvements in development activity, concerns about governance stability and market conditions remain, impacting ZEC's long-term outlook.
Zcash (ZEC), a cryptocurrency that focuses on privacy, is worth about $427 right now. It has gone up over 3% in the last 24 hours. This is because the Zcash Foundation declared that the Securities and Exchange Commission inquiry that started in August 2023 is over. The end of the regulatory process is a big step forward for the privacy coin sector and could mean that things are changing for digital assets under the current administration.
Zcash’s SEC Investigation Ends Without Enforcement Action
This week, the Zcash Foundation said that the SEC has officially finished its examination of “certain crypto asset offerings” and has not suggested any enforcement actions or modifications to the law. The investigation, which started when a subpoena was sent out on August 31, 2023, had made the project unclear for about 18 months.
The Foundation said that the SEC’s decision shows their “commitment to transparency and compliance with applicable regulatory requirements.” The closure fits with a larger trend of the government becoming less strict under President Donald Trump. For example, the SEC has dropped several high-profile investigations against cryptocurrency ventures in the past year.
This regulatory decision is especially important for cryptocurrencies that focus on privacy, since financial regulators have been quite concerned about how they could be used for illegal activity. The choice not to pursue enforcement implies that privacy features alone may not automatically break securities laws. This could set a precedent for other projects like this one.
ZEC/USD Technical Analysis: Price Action and Support Levels
ZEC’s current price movement looks like it is stabilizing following a significant drop that lasted until late 2025. The token just rallied back from local lows and is now above the $400 support level, which is a psychological threshold. Based on previous trading patterns, resistance seems to be forming in the $440–450 range.
The 3% daily gain that happened at the same time as the SEC release shows that the market is happy with clearer rules. But before saying that a trend has changed for good, we need to see evidence from trade volume and momentum indicators. The price movement is still stuck in a range, moving between support at $400 and resistance at $450.
The $400 support zone, which has held up well in the past few weeks, and the $450–470 resistance area are two important technical levels to watch. A significant break above $470 with a lot of volume could mean that a bigger recovery is starting. On the other hand, a loss below $400 could test lower support around $350.
Development Activity Shows Recovery Signs
The on-chain development indicators for Zcash show that things are getting better, but they are still very unstable. According to Santiment data, development activity dropped to 0.5 in early January 2026 but has since risen to about 2.9. These numbers are still below historical highs, but the fact that they are stable implies that protocol maintenance is still going on, even though several developers have left the ecosystem recently.
The Foundation has not said that the recent departures of developers were planned, but there are still concerns about the stability of governance and the long-term continuity of development. The SEC’s decision to close could make things clearer for regulators, which could assist bring in new donors and steady the development pipeline.
Zcash Price Prediction: Cautious Optimism Amid Uncertainty
ZEC has a mixed outlook for the future. Getting rid of regulatory overhang makes it easier to recover, but there are still big problems that need to be solved. If positive momentum keeps going, ZEC might challenge the $450–470 resistance zone in the near future. If it breaks through, it might aim for the $500–550 level in the next three months.
But there are still big risks on the downside. Limited upside potential could be caused by slow development, continued governance issues, and the state of the market as a whole. If the overall crypto market mood improves and development picks up speed, ZEC might test $550–600, but a realistic prediction for Q1 2026 puts it between $400 and $500.
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