#ZEC突破394美元 $ZEC Combining the market trends and technical signals of ZEC since December, the breakthrough of $394 is a key breakout driven by recent short covering, which not only strengthens the short-term bullish momentum but also creates conditions for further challenges to higher price levels:
1. Motivation and support for the breakthrough: This breakthrough cannot be separated from the short covering that brought about a squeeze effect. In the past 12 hours, ZEC's liquidation volume exceeded $5.36 million, and in 24 hours, it exceeded $7.39 million. A large number of bearish traders were forced to liquidate at market price, significantly increasing buying pressure and rapidly driving up prices, which is also the core motivation for breaking through the key price level of $394. At the same time, ZEC had a strong rebound from around $392 at the 0.5 Fibonacci retracement level, and the defense of buyers at price levels near this range also laid the foundation for breaking through $394.
2. Technical benefits after the breakthrough: After breaking through $394, ZEC's technical indicators show multiple positive signals. The MACD indicates that bearish momentum continues to weaken and is likely to form a bullish crossover; the RSI indicator has also rebounded from the previously oversold region, indicating that upward momentum is gradually recovering. Moreover, the market previously believed that breaking through $400 for ZEC could be seen as a reversal signal. This breakthrough of $394 has approached that reversal point, and if it can stabilize and further break through $400, it is highly likely to launch an attack on the pressure range of $420 - $450, and even potentially reach the 0.618 Fibonacci level of $475.
3. Potential variables to be wary of: Currently, ZEC's reversal is still in the early stages, and there is still considerable uncertainty. On December 1, it once fell 20% in 24 hours, dropping to a low of $351.28, indicating insufficient price stability. If there is a lack of sustained trading volume support in the future, upward momentum may likely stagnate, leading to a decline back to the support range of $380 - $360. Additionally, the SEC's discussions on the regulation of privacy coins in the related meeting on December 15 remain a key catalyst. If regulatory attitudes become stricter, even a short-term breakthrough of $394 may be dragged down by subsequent market panic, leading to a price correction.
