Zcash shows a mixed price movement in the recent cycles, alternating between short-term pullbacks and rapid recoveries. Volatility remains high, but the overall technical structure still shows an upward trend.
Despite hesitance in the spot market, the broader trend for ZEC indicates opportunities for continued upward adjustment if key conditions align.
Zcash holders help
Blockchain data shows increasing confidence among large Zcash investors, with wallets ranked in the top 100 increasing their combined ZEC holdings by 2.7% over the past 24 hours. This accumulation occurs while prices drop nearly 6%, indicating strategic buying rather than a reactive sell-off to the situation.
Such behavior reflects long-term confidence, as large investors accumulate coins during price declines when they expect higher prices in the future. Thus, their actions indicate that expectations for recovery remain and help build a supportive demand base, which may help stabilize ZEC during times of overall market uncertainty.
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Technical indicators support this positive outlook, as the Squeeze Momentum Indicator is signaling that a squeeze is occurring, which often precedes significant price movements when volatility expands after being compressed for a period.
Importantly, the histogram graph shows that the uptrend is still ongoing. If the squeeze releases while momentum remains positive, the resulting volatility could benefit ZEC's upward adjustment. However, overall market stability will play a crucial role in determining whether this breakout will occur.
ZEC is forming an ascending triangle, a continuation pattern that often ends with a higher adjustment. This structure indicates increasing buying pressure against horizontal resistance. Therefore, based on the target measurement of this pattern, if a breakout occurs, it could push prices up to 50%, targeting the level of 670 USD.
And if the price rebounds from the support level of 403 USD, it will further strengthen this scenario. If it can stay above this level, Zcash may have a chance to break through the resistance at 442 USD. Successfully moving above 442 USD could be a signal that ZEC will break out of this triangular formation, paving the way to the resistance at 500 USD. Once that level is surpassed, it would confirm a broader bullish phenomenon.
However, the downside risk remains if momentum fades, because if the price falls below the support at 403 USD, it would render the ascending triangle incomplete. In that scenario, ZEC could drop to the level of 340 USD, erasing most of the gains made this month and overturning the existing positive outlook.
