Zcash has experienced a sharp increase, gaining 13% in the last 24 hours and approaching the $500 level.
This rally shows increasing confidence among holders and favorable technical momentum. Unlike many altcoins, ZEC maintains relative strength despite the uncertain market situation.
It seems that Zcash holders are changing their mindset
Momentum indicators show an improvement in sentiment towards Zcash. The relative strength index has crossed above the neutral level of 50.0 and is now in positive territory. This change places ZEC among the few altcoins currently exhibiting bullish momentum.
For clarification, a relative strength index (RSI) above 50.0 suggests that buyers are taking control. Such a situation may help Zcash withstand short-term bearish pressure affecting the broader cryptocurrency market. Observations indicate that strong momentum readings with stable demand from holders often favor the continuation of the trend.
Additionally, macro indicators also confirm positive prospects. The Chaikin Money Flow (CMF) is rising, signaling a slowdown in capital outflow. Although the indicator still remains below zero, the increase suggests weakening selling pressure.
It is important to emphasize that reversing outflows is significant during a rebound phase. If market conditions stabilize, declining outflows may turn into net inflows. Such a change would confirm increasing purchases by investors and provide the liquidity needed to sustain ZEC's upward trend.
The Zcash price is hovering around 438 USD at the time of this writing, indicating a 13% increase over the day. The altcoin's price is currently testing the resistance zone at 442 USD. Breaking this level is crucial to confirm the continuation of the current bullish rally.
Bullish technical signals support further gains. If momentum indicators remain positive and capital flows stabilize, ZEC could head toward 500 USD. Such a move requires an increase of just 13.8% from current levels, making this target achievable under favorable conditions.
Downside risks remain if resistance rejects the price. Failure to break the 442 USD level or a return of supply could bring Zcash back toward the support level at 403 USD. Meanwhile, losing this level would weaken the bullish outlook and open the way for a deeper correction toward 370 USD.
To read the latest cryptocurrency market analysis from BeInCrypto, click here.
