The cryptocurrency landscape in 2026 is beginning to emphasize privacy-focused coins as a leading narrative, with Zcash (ZEC) standing out due to its impressive performance and increased investor interest. Over the past year, ZEC has surged by 780%, capturing the attention of prominent market participants such as Arthur Hayes, the former CEO of BitMEX.
Hayes has disclosed that his investment vehicle, Maelstrom, started accumulating substantial positions in ZEC during Q3 of 2025. He is betting on privacy becoming the defining theme of the crypto market this year, positioning ZEC as a primary means of gaining exposure to this trend. Hayes has articulated his investment thesis clearly, stating in his recent essay that ZEC will serve as the "privacy beta," a benchmark for privacy-centric digital assets.
According to Hayes, outperforming major cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH) will involve reallocating capital from these established assets into privacy coins. He expressed a willingness to sell BTC to fund these privacy positions. This strategic move aligns with the growing climate of increased regulatory surveillance, prompting crypto users to place a premium on transactional anonymity—a feature Zcash offers by default through its privacy technology, which conceals transaction details unlike transparent public blockchains.
This growing appetite for privacy solutions within crypto communities parallels a broader shift driven by concerns over government monitoring and data privacy. With ZEC poised as a leader due to its sophisticated privacy features, market interest in such coins is gaining momentum.
In contrast to the upward trajectory of ZEC, legacy altcoins like Solana (SOL) and Cardano (ADA) have shown relatively weak performance and ongoing technical challenges, limiting their appeal as near-term investments.
Solana’s Struggle to Reclaim Momentum
Solana's price currently remains approximately 45% below its peak in October, when it neared $250. Technical analysis reveals that SOL is unable to surmount critical resistance levels. It is trading beneath the Supertrend indicator at about $141.82 and continues to hover below its 100-day and 200-day exponential moving averages (EMAs), which act as dynamic resistance. A persistent descending resistance zone has effectively capped any upward rallies in recent months.
For SOL to demonstrate a meaningful change in its trend, it would require a decisive breakout above the $142 to $150 range coupled with increased trading volume. These technical signals would be necessary to challenge the prevailing bearish momentum.
Cardano’s Continued Downtrend
Similarly, Cardano’s ADA has experienced a downturn, trading roughly 57% below its September high near $0.95. Currently, ADA is confined within a descending channel pattern, a bearish technical setup, and remains below major EMAs. The downward pressure suggests strong bearish sentiment among traders.
ADA has found some support near $0.38, bouncing from this level, yet it has yet to reclaim the 50-day EMA or break above the $0.42 to $0.45 resistance zone. Without surpassing these levels, there is little to suggest a reversal in ADA’s declining price trend.
Zcash Preparing for Potential Breakout
On the other hand, ZEC remains in a technical consolidation phase characterized by a large symmetrical triangle pattern forming since November. Prior to entering this consolidation, ZEC experienced a strong upward move, gaining roughly 145% from $302 to $742 within just two weeks, underscoring its recent volatility.
The pattern, a classic coil, signifies an equilibrium of buyers and sellers, often preceding significant price moves. With the triangle’s apex nearing—indicated by converging trend lines expected to resolve within 7 to 10 days—ZEC is setting up for a potential breakout.
Price is currently oscillating between key Fibonacci retracement levels, specifically the 0.382 level at $476 and the 0.5 level at $522. All major EMAs, including the 20-day at $483, 50-day at $453, 100-day at $387, and 200-day at $283, are tightly compressed, which, combined with reducing volatility, indicates the building of a 'powder keg' ready to explode in either direction.
If ZEC breaks above the triangle resistance around $550 to $570, initial targets include $600 followed by $620, aligning with the 0.618 Fibonacci level. Further gains past $650 could open the possibility of retesting previous highs near $742, with extended targets tracking toward $800 to $850.
Conversely, failure to hold support near $476 could lead to declines targeting $406, then the 100-day EMA at $387. A drop below $350 could signal a breakdown of the structure, potentially retracing nearly back to the $302 base level.
Market Implications and Outlook
The divergence between ZEC and established altcoins SOL and ADA highlights shifting investor preferences and technical dynamics within the crypto market. With privacy technology gaining traction amid regulatory scrutiny, ZEC’s role as a privacy flagship coin could position it for sustained outperformance.
However, technical resistance, price patterns, and market volatility for all three coins suggest caution for investors. Potential gains in privacy assets come with risks tied to technical breakdowns and broader market conditions influencing crypto valuations.
Key Points:
- Zcash (ZEC) has surged 780% year-over-year, leading the charge in privacy-focused cryptocurrencies.
- Former BitMEX CEO Arthur Hayes has heavily invested in ZEC, betting privacy will dominate 2026’s crypto narrative.
- Solana (SOL) and Cardano (ADA) are trading significantly below recent highs and face technical resistance that limits upside potential.
- ZEC’s price is coiling within a symmetrical triangle pattern, signaling an imminent breakout with both upside and downside scenarios.
Risks and Uncertainties:
- ZEC support at $476 is critical; a break below this level could trigger steep declines.
- SOL’s inability to break key resistance levels presents continuing bearish momentum risks.
- ADA remains in a descending channel with bearish technicals, requiring a break over $0.42-$0.45 to reverse trend.
- The converging EMAs and compressed volatility for ZEC suggest high risk of price swings upon triangle resolution.
Disclosure: This article is for informational purposes and does not constitute investment advice.