Key Takeaways
What are the next price targets for ZCash?
A rally to $885 and $1,036 was possible in the coming days and weeks.
Does this mean it is time to buy ZCash?
Traders can consider buying, but it is too late for investors looking to hold for a considerable time period.
ZCash [ZEC] recovered impressively from its retracement to $424 a week ago. This retracement measured 43.42% at its peak, and extended from $750 to $424.35.
It only took five days to play out, and bulls were ready to bid and drive the uptrend higher.
However, since the 7th of November, Bitcoin [BTC] has dropped by 8%. During this period, ZEC has gone down by 8.98%.
Is this the time to buy or sell ZCash? Was the recent retracement and the subsequent recovery a sign of bullish strength?
The ZCash dilemma — buy, sell, or hold?
Source: ZEC/USDT on TradingView
A bearish divergence (white) between price and momentum has developed on the daily timeframe. This indicates a retracement is likely over the coming days, and could take prices back to the $500 mark.
The divergence heightened the risk of volatility in the coming days. However, zooming out, we find that the time to buy ZEC was a long way behind us. Now is the time for long-term holders to sell their ZEC.
If trying to make some gains, the risk right now is too high compared to the reward. The privacy narrative can still drive ZEC up to $880 and $1,030, but this opportunity comes with sizeable downside risk.
Source: ZEC/USDT on TradingView
In mid-2024, ZEC formed a bullish weekly structure after a rally beyond $35.59 in the first week of August. Toward the end of 2024, the $47 resistance was breached.
The subsequent retracement in the first half of 2025 saw a retest of the demand zone at $30, marked in cyan. The bullish structure shift and the breakout past a key resistance level were the technical clues for buying ZCash.
The privacy narrative began to gain traction in September, strengthening in October. Technical and narrative strength combined to send prices soaring.
Instead of buying ZEC now, investors should do their research and find tokens with a compelling use case or potential narrative with a promising structure, with ZEC’s run for reference.
In a post on X, CEO of Bitwise Asset Management Hunter Horsely asked Crypto Twitter denizens for their arguments against ZCash and in favor of Bitcoin, and “only Bitcoin“.
Critics pointed out that nothing fundamental has changed about ZCash in the past six months. The rally was not because of a fundamental shift, but one driven by hype, FOMO, and a powerful privacy thesis.
Therefore, new entrants to the ZCash market face high risks and relatively small rewards. A smarter move is to find alternative tokens to buy that broke key resistances and were revisiting pivotal demand zones.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
