Zcash (ZEC) briefly surpassed $380 earlier today, marking its highest level since the 2021 bull cycle. The token has gained over 70% in the past month, supported by renewed interest in privacy features, growth in shielded supply, and multi-chain integrations. With $400 now within reach, current technical indicators offer a mixed picture on whether the uptrend can continue without a pullback.
Price Momentum Slows Near Resistance
The recent move brought ZEC well above key levels, but several indicators now suggest a slowdown in momentum. The daily RSI remains close to 80, typically considered overbought. While this does not automatically signal a reversal, it has historically preceded consolidation phases or short-term corrections.
MACD is still in bullish alignment, but the histogram has begun to flatten. The MACD line remains above the signal line, though with reduced separation. This can reflect either a loss of buying strength or a transition into a slower upward phase.
Price is still holding above major moving averages, including the 50-day and 200-day lines, which confirms that the broader trend remains intact. However, the current candles are beginning to print smaller bodies, and the pace of gains has slowed since the midweek rally.
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Volume, Volatility, and Band Compression
Trading volume has stayed high during the breakout, but it is no longer growing. While not yet a bearish signal, fading volume during a push toward resistance may reduce the probability of a clean breakout.
At the same time, Bollinger Bands have widened, with price hugging the upper band. This is a common pattern during trending markets but often leads to sideways movement when not supported by increasing volume. Moreover, ZEC trades close to the upper band, which confirms overbought conditions.
ZEC has now tested the $375–$385 zone multiple times this week. If bulls are unable to push through this area with conviction, the market may rotate into a range between $340 and $380 before attempting another breakout.
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Technical Setup Remains Strong
The $400 level remains technically within reach, and ZEC has cleared multiple resistance zones in recent weeks. Trend indicators remain positive overall. However, conditions on the daily chart now show signs of short-term exhaustion, with slowing momentum and reduced follow-through above $380.
A confirmed breakout above $400 with volume expansion would suggest trend continuation. If that does not materialize, the price may consolidate or retrace toward previous support areas around $310–$340.
As always, technical analysis reflects historical data and momentum conditions. Price direction going forward may depend on whether current demand remains stable as the market approaches a psychologically significant round number.
