ZCash (ZEC) has been on a rollercoaster, experiencing a significant surge followed by a sharp correction. Currently navigating a period of high short-term volatility, traders are closely watching for definitive signs of whether the recent retracement will deepen or if bulls can reclaim control and drive the next upward move.
ZCash's Volatile Correction and Emerging Bearish Signals
After an impressive 323% rally that saw ZEC climb from $177 to $750 in just three weeks, the cryptocurrency has since shed 36.8% of its value within five days, now trading around $473. This rapid decline has introduced considerable short-term volatility, with technical indicators signaling a prevailing bearish momentum across lower timeframes. While the 1-day chart still holds a bullish structure, the 4-hour timeframe’s Relative Strength Index (RSI) dipping below 50 (at 40.9) confirms a strong bearish bias, suggesting the current retracement might not yet be complete.
Navigating Critical Price Levels for Future Direction
Traders are closely monitoring Fibonacci retracement levels for potential support and resistance. ZEC currently sits just above the 50% retracement level at $463.5, but a deeper test of the 61.8% ($395.9) or even 78.6% ($299.6) levels remains a strong possibility if bearish pressure persists. A crucial supply zone exists between $475-$518, which is likely to act as resistance and a potential selling opportunity. For bulls to reassert dominance and signal short-term strength, ZEC would need to decisively clear the $518-$520 resistance area, ideally supported by above-average trading volume. Conversely, a sustained dip below $395 would solidify bearish control, opening the door for further downside toward the $300 mark, suggesting traders should maintain a short-term bearish bias until key resistance levels are converted into support.
