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- ZCash rebounded strongly from long-term support, reclaiming bullish short-term momentum.
- Liquidity clusters suggest potential upside toward resistance before any correction.
- Bitcoin’s trend remains the primary factor that could confirm or invalidate the rally.
ZCash (ZEC) has bounced sharply from a crucial long-term support zone, offering traders a dose of optimism after weeks of uncertainty. The privacy-focused cryptocurrency surged nearly 10% in 24 hours, alongside a noticeable jump in trading volume, signaling renewed speculative interest. While the broader trend still hinges on Bitcoin’s direction, recent price behavior suggests ZEC may not be as structurally weak as previously feared.
Momentum Builds After Break Above $300
The rebound above $300 marked a technical shift in market sentiment. Data from CoinMarketCap shows both price and liquidity rising, typically a sign that traders are re-entering positions rather than merely covering shorts.
Short-term charts indicate the weekly structure remains intact, hinting that buyers continue defending key zones. However, resistance clusters between $365 and $460 still loom large. Analysts using tools like TradingView note that Fibonacci retracement levels and prior supply areas align in this range, making it a critical test for bulls.
Liquidity Zones Suggest Possible Upside First
On-chain and derivatives data offer additional clues. Liquidation heatmaps from CoinGlass reveal concentrated short positions near the $340–$360 region. Markets often move toward such liquidity pockets, raising the probability of a short squeeze before any meaningful correction.
Volume indicators also remain constructive. Despite overbought signals on oscillators, buying pressure has pushed cumulative flows higher this month. This combination often precedes brief consolidation rather than immediate reversals, suggesting dips toward $300 could attract fresh demand instead of panic selling.
Bitcoin’s Position Remains the Deciding Factor
Still, ZCash’s trajectory cannot be viewed in isolation. Bitcoin’s current struggle around the $70,000 region continues to shape broader market sentiment. Data from CryptoQuant indicates derivatives leverage has recently reset, reflecting a cooling phase rather than strong directional conviction.
Historically, when Bitcoin trades below its aggregate cost basis, rebounds tend to face selling pressure as investors attempt to exit at breakeven. Should Bitcoin fail to reclaim higher ground, altcoins like ZEC could enter a longer consolidation period despite their recent strength.
Also Read: Zcash Devs Break Away and Launch New Wallet in Weeks — Here’s What Changes
For now, ZCash shows signs of resilience, supported by rising liquidity and intact structural levels. A push into overhead resistance zones appears plausible in the near term, especially if short liquidations accelerate.
However, traders remain cautious. Without a decisive Bitcoin recovery, rallies may struggle to sustain momentum. ZEC’s rebound offers opportunity—but not certainty—in a market still searching for direction.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
