Zcash has shown mixed price movements in recent sessions, fluctuating between short pullbacks and brief rallies. Volatility remains high, but the overall technical structure continues to be bullish.
Despite hesitation in the spot market, ZEC's macro trend suggests the potential for a sustained rise if key conditions are met.
Zcash owners save the day
On-chain data shows increasing trust among Zcash's largest owners. Wallets ranked among the top 100 increased their total ZEC holdings by 2.7% in the last 24 hours. This accumulation occurred while the price fell nearly 6%, indicating strategic purchases rather than reactive sales.
Such actions reflect long-term optimism. Large owners often accumulate during downturns when they expect higher prices in the future. Their actions suggest that expectations of a rise remain intact, providing a supportive demand base that can stabilize ZEC during periods of greater market uncertainty.
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Technical indicators support this positive view. The Squeeze Momentum Indicator currently signals that a squeeze is forming. This setup often comes before strong price movements when volatility increases after a period of low volatility.
Most importantly, the histogram shows that bullish momentum is still active. If the squeeze is triggered while momentum remains positive, the subsequent volatility could favor an increase for ZEC. Overall market stability will be crucial for whether this breakout is realized.
ZEC is forming an ascending triangle, a bullish continuation pattern that often leads to higher prices. The structure suggests increasing buying pressure against a horizontal resistance level. Based on the pattern's measured move, a breakout could yield a rise of 50%, targeting the $ 670 level.
An increase from the support level at $ 403 will strengthen this setup. If Zcash can hold this level, it may break the resistance at $ 442. A successful breakout above $ 442 will likely trigger a breakout out of the triangle and open the way toward the resistance at $ 500. If this level is cleared, it will confirm a broader bullish rally.
Downside risk remains if momentum falters. A fall below the support at $ 403 will invalidate the ascending triangle. In that case, ZEC could fall toward the $ 340 level and erase much of this month's gains, which would break the bullish thesis.
