Zcash has fluctuated in recent days, sometimes making small dips and short recoveries. Volatility remains high, but the broader technical structure is still on the bulls' side.
Although there is hesitation in the spot markets, ZEC's macro trend points to the possibility of a longer price rally if certain conditions are met.
Zcash holders to the rescue
According to blockchain analysis, the confidence of the largest Zcash holders is increasing. The combined ZEC holdings of the top 100 wallets grew by 2.7% in the last 24 hours. This accumulation occurred while the price dropped nearly 6%, indicating deliberate buying rather than reactive selling.
This action reflects long-term optimism. Large holders often buy more during dips as they expect prices to rise in the future. This provides ZEC with a demand base that can stabilize the price during broader market turmoil.
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Technical indicators support this positive outlook. The Squeeze Momentum Indicator is currently signaling the formation of a squeeze phase. Such a setup often anticipates a sudden price movement when volatility increases after the consolidation phase.
Significantly, the histogram shows that bullish sentiment remains strong. If the squeeze breaks and sentiment stays positive, volatility may support ZEC's upward movement. The stability of the broader market significantly affects whether this breakout will materialize.
ZEC is forming an ascending triangle, which is a bullish continuation pattern and often ends with a rise. The structure indicates increasing buying pressure against the horizontal resistance level. Based on the measured movement of the pattern, a breakout could bring a 50% price rally towards $670.
A rebound from the support level of $403 would reinforce this setup. If Zcash remains at this level, it could break the resistance of $442. A successful rise above this threshold would enable the triangle to be surpassed, opening the way to a resistance at $500. If this level is also overcome, a broader bullish rally would gain confirmation.
Downside risks increase if sentiment does not hold. If ZEC drops below the support of $403, the ascending triangle will be invalidated. In that case, ZEC's price could drop towards $340, wiping out this month's gains and negating the bullish outlook.
