Zcash has shown mixed price movements in recent sessions, alternating between short withdrawals and brief recoveries. Volatility remains high; however, the broader technical structure still leans towards the upside.
Despite the hesitation in the spot market, the overall trend of the ZEC index indicates the possibility of continued upward movement if key conditions align.
Zcash holders to the rescue
On-chain data indicates increasing confidence among the largest Zcash holders. Wallets ranked among the top 100 addresses increased their ZEC holdings by 2.7% over the past 24 hours. This accumulation occurred while the price declined by about 6%, suggesting strategic buying rather than reactive selling.
This behavior reflects long-term optimism. Large holders often accumulate during dips when they anticipate a rise in future prices. Their actions indicate that recovery expectations remain solid, providing a supportive demand base that may stabilize ZEC during broader market uncertainties.
Want more insights on tokens like this? Subscribe to the daily crypto newsletter from editor Harsh Notaria here.
Technical indicators support this constructive outlook. The momentum oscillator currently indicates a squeeze formation. This setup often precedes sharp price movements when volatility expands after a period of compression.
It is important that the histogram chart shows that upward momentum is still active. If the pressure rises while momentum remains positive, the resulting volatility may favor an upward movement for ZEC. The stability of the broader market will play a crucial role in determining whether this breakout occurs.
ZEC forms an ascending triangle, a bullish continuation pattern that often breaks upwards. The structure indicates increased buying pressure against horizontal resistance. Based on the measured move of the pattern, a breakout could lead to a 50% rise, targeting the $670 level.
A bounce from the $403 support would reinforce this situation. Holding this level may allow Zcash to break through resistance at $442. A successful move above $442 is likely to trigger a breakout of the triangle, opening the way towards resistance at $500. Exceeding this level would confirm a broader bullish uptrend.
Downside risks remain if momentum fails. A breakdown below support at $403 would invalidate the ascending triangle. In this scenario, ZEC could drop towards the $340 level, erasing much of this month's gains and negating the bullish thesis.
