Zcash has continued its massive rally, now trading at $346 after a fresh 25% daily gain and over 533% growth in the last month. The move has pushed ZEC into the top 25 by market cap, fueled by growing volume and increased interest.
Technical indicators still reflect bullish strength, but there are early signs of pressure. The RSI(14) is now at 75, with the faster RSI(7) at 81. These levels suggest ZEC is moving into overbought territory. This doesn’t mean the uptrend must reverse immediately, but it does raise the likelihood of a pause or short-term correction, especially with the current pace of gains.
Price has also moved above the upper Bollinger Band, which now sits at $327. That typically indicates heightened volatility and potential resistance. When combined with rising RSI, it adds weight to the idea that the asset could be entering a decision point. These conditions often lead to either a breakout continuation or a temporary cooldown, depending on whether momentum can hold.
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Key Level Approaching at $359
The next major area to watch is the 23.6% Fibonacci retracement level near $359. This level could act as a resistance zone if momentum weakens. A strong breakout above it would confirm that buyers remain in control and could open the door to further upside. On the other hand, hesitation at this zone might lead to a consolidation range or even a pullback toward recent breakout levels.
ZEC’s current trend is also being driven by broader market sentiment and external narratives. News of Grayscale’s Zcash trust, increased interest in shielded transactions, and public endorsements from high-profile figures like Arthur Hayes have brought new visibility to the project.
Structure Remains Bullish, With Caution Signs Building
From a technical perspective, ZEC is still in a strong uptrend. Momentum remains intact, and volume has followed price, which supports the move. But the combination of high RSI and price stretching above the Bollinger Bands signals that the current leg may be maturing. The $359 level will be the first real test of whether this trend can continue without pause.
As usual, technical analysis can offer structure, but it doesn’t capture everything that moves markets. Sentiment shifts, headlines, and macro factors can accelerate or reverse trends faster than charts alone can track.
