Zcash has just had a strong increase, rising by 13% in the last 24 hours and is gradually approaching the 500 USD mark.
This price increase reflects greater confidence from investors, alongside technical momentum supporting the price. Unlike many other altcoins, ZEC is still maintaining strength even when the overall market is volatile.
Investors holding Zcash seem to be changing their perspective.
Momentum indicators all show that sentiment towards Zcash is improving. The Relative Strength Index (RSI) of ZEC has crossed the neutral level of 50.0 and entered the positive zone. This places ZEC among the few altcoins currently signaling a price increase.
RSI above 50.0 indicates that buyers are in control. As a result, Zcash can resist the short-term downward pressure from the overall market. When strong momentum is combined with stable demand from investors, the upward trend may continue.
Do you want to receive more token analyses like this? Sign up for the Daily Crypto Newsletter from editor Harsh Notariya here.
Macro indicators also show positive signals. The Chaikin Money Flow indicator is gradually rising, signaling that the outflow of capital is decreasing. Although the indicator is still below the 0 line, the upward trend suggests that selling pressure is easing.
A slowdown in outflows is crucial during the recovery phase. If the market stabilizes, a decrease in outflows can turn into inflows. This will reflect that investor confidence is improving and provide additional liquidity to sustain ZEC's upward momentum.
The price of Zcash is currently around 438 USD at the time of writing, up 13% in just one day. The price is currently testing the resistance area of 442 USD. Breaking through this level is crucial to confirm that the upward trend is being maintained.
All technical analysis signals lean towards a clear upward trend. If momentum indicators remain positive and capital flows stabilize, ZEC could easily approach the 500 USD mark. To reach that, ZEC only needs to increase by another 13.8% — this is a feasible target if the market supports it.
Downside risks still exist if the price cannot break through the resistance zone. If ZEC fails to surpass 442 USD or selling pressure returns, the price could easily drop back to the support zone of 403 USD. If this area is breached, the upward trend could weaken further and the price could drop to 370 USD.
