Zcash has been putting in a solid recovery effort over the last 48 hours, turning things around after hitting a major local bottom. Buyers stepped in with decent volume to trigger a steady move back up. Right now, it's pushing hard against a key near-term resistance block to see if this bounce has legs.
$ZEC is currently testing an overhead resistance zone resting between $555.00 – $570.00. This area is highly significant because it acted as a major distribution level where sellers heavily defended the range during previous attempts to push higher. Clearing this ceiling cleanly is required to unlock a stronger continuation.
The play from here looks very straightforward. If the price can gather enough momentum to break and hold above the $555.00 – $570.00 supply barrier, it opens up the track for a much larger expansion move. But if it gets rejected here, expect a fast pullback to retest the solid demand floor waiting lower down around $510.00 – $520.00.
While the current upward momentum looks promising, buying right underneath an unconfirmed resistance level carries high risk. Don't chase the green candles blindly. Stay patient and wait to see if the price can break the ceiling or pull back to form a clean higher low at support before stepping in.
