ZCash (ZEC) has recently experienced a notable rally, drawing significant attention to its immediate price trajectory and underlying technical health. A deep dive into its price action and various indicators reveals a complex, yet predominantly bullish, outlook as the privacy coin navigates critical support and resistance levels.
Navigating ZCash's Bullish Momentum
ZEC has recently staged an impressive rally, surging over 30% and successfully breaching the key psychological $400 level. This ascent has been reinforced by the robust defense of the $360 support zone, indicating strong buying interest at lower levels. From a price action perspective, both the swing and internal structures on the daily timeframe remain distinctly bullish. The recent complete filling of a price imbalance between $395 and $425 further solidifies the expectation for continued upward momentum, establishing $480 as the immediate next target.
Conflicting Signals and Critical Price Levels
Despite the strong price momentum, a closer look at demand indicators presents a more nuanced scenario. While shorter 1-hour timeframes exhibit healthy capital inflows and positive momentum (albeit slowing), daily indicators such as the CMF and Money Flow Index signal underlying selling pressure and muted demand. This divergence highlights the importance of key price levels for traders. A short-term demand pocket is identified between $382 and $395. A sustained break above $425 is expected to accelerate ZEC's path towards the $480 target, with potential for further extensions to $550 and $610. Conversely, a breakdown below $382 would act as a critical bearish trigger, invalidating the current bullish outlook and potentially leading to a significant retracement towards the $330-$350 range. Given the prevailing bullish structure, traders are advised to consider long positions with a disciplined stop-loss placed at or just below $382, aiming for the $480 mark.
