ZEC Hits $308 Then Dumps Hard: What’s Next for This Breakout?
Zcash (ZEC) is now buying and selling just under a key technical resistance vary, with value motion displaying indicators of slowing following an earlier surge. At the time of writing, ZEC is priced at $240, with a 24-hour buying and selling quantity of $730 million.
Meanwhile, the token is down barely previously 24 hours however stays up over 460% over the previous month (CoinGecko knowledge). The 24-hour value vary reveals a high of $308 and a low of $237, indicating high intraday volatility following a pointy rally.
Wedge Pattern Approaches Resistance
Current chart patterns present ZEC forming an ascending wedge. This construction usually seems throughout robust rallies and usually indicators a degree the place momentum begins to slim. The value is now approaching a resistance zone between $280 and $313, marked by Murrey Math ranges. These ranges are sometimes referenced by merchants during times of overextension.
Movement into this zone has slowed. If quantity will increase, the value might check this resistance once more. If not, the market might begin to flip again towards decrease assist ranges. The closest zones of assist on the chart seem at $250 and $220.
In addition, the Relative Strength Index (RSI) has reached 69, near the standard overbought mark of 70. The 14-day RSI transferring common is now at 70, which suggests momentum has stretched.
So far, the RSI has not damaged above the overbought stage. However, staying close to these ranges might result in sideways buying and selling as individuals wait for a brand new route. A brief pullback can be a typical response when RSI hovers at these highs.
Multi-Year Breakout Meets Initial Target
ZEC just lately accomplished a serious technical breakout. According to analyst Javon Marks, the token ended a downtrend that lasted over a 12 months and a half. After the breakout, the value moved rapidly towards $308, which matched a key goal. Marks stated,
“Another >1,000% callout within the books.”
A second goal has been positioned close to $596.65, although this stays above present ranges.
The transfer adopted a interval of low resistance and accelerating shopping for quantity. The value has not but proven any prolonged correction, although exercise close to $308 might result in consolidation.
Futures Interest and Mixed Market Sentiment
According to Coinglass, open curiosity in ZEC futures reached $306.3 million, rising from beneath $50 million in September. This sharp enhance displays a surge in speculative participation. Such development usually coincides with larger volatility and bigger place sizes.
Market sentiment stays break up. Analyst Henry wrote,
“ZEC seems cooked. $311 wick was the exit liquidity.”
He additionally added that failure to carry above $300 may result in strikes towards the mid-$240 vary. He referenced a attainable head and shoulders sample forming, whereas noting that bulls would want to behave rapidly to alter momentum.
As CryptoPotato posted on X, Zcash founder Zooko responded to latest value hypothesis by saying,
“I don’t know why the Zcash value has been skyrocketing. And I don’t know if it will return down.”
He additionally dismissed solutions of coordinated market manipulation, calling them “simply extra cynical propaganda.”
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