Zcash Direction on Hold: Why Arthur Hayes Prefers Its Privacy Model

Zcash (ZEC) has surged over 600% in the past three months, yet it has spent recent weeks in a directionless range. While much of the crypto market attempts modest recoveries, ZEC remains stuck in consolidation.

This sideways action comes even as a high-profile industry figure has voiced fresh praise for the project. In a recent interview, BitMEX co-founder Arthur Hayes highlighted Zcash’s privacy design—sparking interest but failing to ignite immediate price momentum.

ZEC is up nearly 4% on the day but still shows hesitation. Traders are weighing whether the current base holds significance or if the chart needs to lead before conviction returns.

(Sources: TradingView)

Arthur Hayes Shifts Preference to Zcash Privacy

Arthur Hayes, a prominent voice in crypto markets, explained in an interview with Kyle Chassé how his views on privacy coins have evolved.

Once a strong advocate for Monero, Hayes now favors Zcash due to recent advancements in its shielded transactions and cryptographic upgrades. “This is one of the reasons I’ve moved from the Monero camp to the Zcash camp when we talk about privacy coins.”— Arthur Hayes (around the 30-minute mark)

Crucially, Hayes focused purely on technical merits and design—not price targets or timing. His comments were not a buy signal or market call, which helps explain the muted price reaction.

Why Zcash Price Hasn’t Responded Yet

Despite the endorsement, ZEC has failed to break out. The chart provides clear reasons.

First, a bearish EMA death cross is forming. The 20-day EMA is on the verge of crossing below the 50-day EMA—a classic signal of short-term selling pressure gaining the upper hand.

Traders often view this crossover as confirmation of weakening momentum, prompting caution.

Second, On-Balance Volume (OBV) offers no support. From December 12 to 18, price declined while OBV weakened further—indicating insufficient buying volume to sustain upward moves.

Rallies without rising OBV frequently fizzle, making sustained breakouts difficult.

Taken together, the technical picture remains unclear: an impending bearish cross and lack of volume reinforcement keep buyers on the sidelines, waiting for confirmation.

Hayes’ long-term praise adds credibility, but the chart demands evidence before momentum shifts.

Key Levels That Could Define the Next Zcash Move

The most telling clue may come from capital flow indicators. The Chaikin Money Flow (CMF) rose from December 11 to 18 even as price corrected—suggesting accumulation by larger holders despite surface weakness.

However, CMF remains below the zero line. A push above zero has historically preceded strong rallies (as seen in early November).

A clear daily close above $434 would signal buyers regaining control, opening the path toward the $516 zone.

On the downside, $371 is the first major support. A break below could invite sellers to test $301—a prior area of significant buying interest.

For now, Zcash trades in wait-and-see mode. Volume-backed buying is needed to turn positive commentary into price action. Until then, direction remains on hold.