ZCash [ZEC] has rallied 24.36% in the past 24 hours, at press time. According to CoinMarketCap data, its daily trading volume has increased by 71% to $491.38 million.
Is this a weekend fake-out, or the start of the next trend?
Understanding the longer-term ZEC price action
AMBCrypto had reported last week that a price drop to the $80-$115 imbalance was a likelihood. Fair value gaps, or imbalances, tend to act as magnets to the price. At the same time, the $200 round number also represented a potent support zone, the report observed.
This has come to pass. ZCash’s latest bounce originated from $184, which was a key Fibonacci retracement level on the weekly chart.
The 1-week timeframe’s price action showed that the swing structure remained bullish. The 78.6% retracement level sat at $187.89. After retesting this support, ZEC has rallied by 55.29% in 8 days.
Should you expect a ZEC dip?
The wider market sentiment was strongly fearful. Bitcoin [BTC] has fallen below the $70k level and struggled to reclaim it convincingly over the past week. It seems likely that the downtrend would continue.
The short liquidations above the current Bitcoin market price could take it higher, giving altcoins some respite. This can aid ZEC, which is at a structurally sound support level after making multi-year highs in 2025.
The 1-day chart showed that it was not the $300 resistance that bulls should be worried about. During the retracement, the $365-$450 region saw two order blocks form that formed the base of another bearish continuation.
Therefore, these areas were likely to serve as supply zones on the way higher once again.
Why traders must wait for better conditions
The 1-day timeframe’s technical indicators were neutral or bearish. The A/D volume indicator was flat to show no strong buying, the MFI was at 52, and the Awesome Oscillator was below the zero line.
They showed momentum was beginning to turn bullish, but also highlighted weak demand.
In this situation, risk-averse investors can wait for a greater influx of buying pressure before looking to go long. They would also want to see the $400 supply zone reclaimed before buying.
Final Summary
- ZCash has rallied 55% in just over a week, and was up over 24% within a day on high trading volume.
- Consistently high buying pressure and a breakout past the key supply zones overhead will signal that the privacy coin is ready for recovery.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
