Hyperliquid has continued its remarkable rally, nearing its all-time high near $60 and maintaining strong momentum above major moving averages. According to the latest reports, the token has surpassed key resistance levels and remains in an uptrend since March, with its price well above major moving averages. The move has been supported by record-breaking trading volume of $1.42 billion and significant social media attention, with mentions reaching record levels. As noted by Ali Martinez on X, the price action has drawn unprecedented social attention, with the token gaining 29.68% over seven days and 45.77% over the past month. However, the market's high volatility poses risks of sharp declines, with analysts warning of potential pullback risks due to crowded sentiment and overbought indicators.
Zcash has emerged as a standout performer with a 12% surge in the past 24 hours, reaching an intraday high of $692 and pushing the token to become the second-best performer among the top 20 coins by market cap. According to latest reports, the rally was triggered by the U.S. Securities and Exchange Commission's closure of its investigation into the Zcash Foundation, removing a major overhang for the project and boosting investor confidence. The move has added roughly 26% to ZEC's market capitalization so far this week, with the token currently trading around $655 after the intraday high. The regulatory clarity comes as a significant boost to market sentiment, with the fear and greed index trending toward greed as traders respond positively to the development. Additionally, the rally has been supported by receding fears that U.S. regulators will take issue with Zcash's privacy features, which some worry could be exploited for ill use. Earlier this year, the Securities and Exchange Commission said it closed a probe into the coin, providing further regulatory clarity.
The Zcash Foundation's financial position has strengthened significantly, with the organization reporting it held about $36.7 million in liquid assets in its Q1 update, most of it denominated in ZEC. This provides a visible financial cushion that supports the project's long-term stability. Despite organizational changes at the Electric Coin Company, core technical development on Zcash continues, signaling that roadmap progress hasn't stalled. Technical indicators on the 4-hour chart show strong buying pressure with momentum indicators pointing to buyer dominance, though the relative strength index (RSI) sits near 70, placing ZEC in overbought territory and raising the risk of short-term pullback. The token's emphasis on privacy features has attracted significant institutional backing, with the Winklevoss twins investing $50 million to help launch Cypherpunk Technologies, a digital-asset treasury company that will hold Zcash. Cypherpunk's stock has gained 17% this month but is down 10% for the year.
Despite strong performance, analysts are warning of potential pullback risks due to crowded sentiment and overbought indicators. For Hyperliquid, technical momentum remains strong but overbought signals are emerging, with the MACD also elevated on the 4-hour chart. If the current rally persists, immediate upside targets are $700 and then $745—a level ZEC hasn't cleared since last November, with a more extended surge potentially testing the $800 psychological mark. However, a market correction could see ZEC retesting the $580 low established on Wednesday, with losing that support exposing lower demand zones around $485. The token's structural outlook hinges on executing its quantum-proof vision and navigating regulatory headwinds, with the quantum upgrade timeline facing potential delays that could become primary bottlenecks. Momentum remains strong with the RSI at 75 on the daily chart suggesting overbought conditions, while the 127.2% and 161.8% Fibonacci extension levels at $79.40 and $114.75 serve as the next key price targets.
The rally has been supported by significant institutional developments, including the launch of the first U.S. exchange-traded funds tied to HYPE by 21Shares. As reported by crypto.news, the firm noted that Hyperliquid handles about $8 billion in daily trading volume and directs more than 95% of fees toward daily HYPE buybacks. Bitwise has also linked its Hyperliquid ETF fee model to HYPE demand, stating it would use 10% of management fees from its BHYP product to buy and hold HYPE on its balance sheet. Grayscale has made Zcash one of its largest holdings, with the firm telling regulators in November that it plans to convert its Zcash trust into an exchange-traded fund, making it more easily accessible to everyday investors. The move helped supercharge the token's rally, with Zcash up about 50% over the past month and 1,140% over the past year, compared to bitcoin's 8% monthly gains and 24% annual decline.
