Did The 20% Zcash (ZEC) Price Correction Just Light the Fuse for Its Next Breakout?
Zcash (ZEC) value has fallen over 20% in the previous 24 hours, sparking worries that the rally might be cooling off. But zoom out, and the image appears very totally different. Zcash value remains to be up 14% this week and over 1,200% in the previous three months — one in all the strongest performers of the cycle.
The dip may not be a reversal. It is likely to be the setup for the subsequent leg greater. Here is why!
Price Consolidates, Yet Forms a Bull Flag
ZEC price appears to be consolidating inside a bull flag, a technical sample that normally seems after a pointy rally. The surge from late October to early November created the flagpole, and the present sideways motion has constructed the flag — a construction that usually results in continuation as soon as the higher line breaks.
What makes this setup stronger is a hidden bullish divergence on the day by day chart. Between November 8 and 10, ZEC fashioned a better low whereas the Relative Strength Index (RSI) — which measures momentum — made a decrease low.
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That normally means promoting strain is fading at the same time as the value holds regular. In quick, the correction would possibly simply be clearing weak arms earlier than the subsequent push. It is value noting that hidden bullish divergence normally factors to development continuation. And that’s positive for the ZEC price.
However, if the latest candle closes in crimson, it could invalidate the hidden bullish divergence with the value forming a set of decrease lows. That might delay the breakout speculation.
Leverage Data Hints at a Brewing Short Squeeze
Derivatives merchants could also be setting the stage for ZEC’s next move. Even a breakout if issues go effectively.
The liquidation map — a chart displaying the place leveraged positions might get worn out — highlights a short-heavy zone between $529 and $651. Short positions on Binance alone complete about $55.42 million, roughly 60% greater than the $35.3 million in lengthy publicity.
That imbalance creates a brief squeeze setup. If ZEC’s value climbs even modestly, quick merchants might be compelled to purchase again positions, including recent momentum to the transfer.
This squeeze zone sits near the bull flag resistance, giving additional gas for a ZEC value breakout try.
Zcash Price Targets a Breakout Above $688
At writing, ZEC trades around $526, principally halfway by its consolidation vary.
A breakout above $612-$688 would verify the flag sample and will set off an upside run towards $749, $898, and $1,010. If momentum stretches additional, the full flagpole projection suggests a possible 230% upside, which might push ZEC near $2,030 over time.
Still, the setup hinges on one situation: the value should keep above $488. A clear drop beneath that might invalidate the bull flag and invite a deeper pullback towards $371.
For now, although, Zcash’s chart appears extra like a recharge than a retreat. And if this sample performs out, the 20% correction would possibly simply have lit the fuse by placing the value motion inside the flag.
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