Zcash has surged over 520% in 30 days, testing key support and resistance for its next move.
- ZEC must stay above $245 to aim for $336 next.
- A drop below $244 could trigger liquidations.
- RSI indicates ZEC may be overbought and due for a pullback.
Zcash Sees Major Price Boom
Zcash (ZEC) has shocked the crypto market with a massive 520% price jump in one month. This rise comes as most other coins saw losses over the weekend. ZEC is now nearing $300, a level it hasn’t reached since December 2021.
The coin’s strong performance places it among the top gainers. ZEC’s recent gains have caught traders’ attention as they look for signs of whether this rally can continue or slow down.
What Might Happen Next?
Technical charts show that ZEC is forming a bull flag pattern. This pattern usually signals a pause before another climb. If ZEC rises above the upper line of this pattern, its next target could be $336, about 25% higher than current levels.
However, a small dip may come first. The price might fall toward the lower trendline of the flag near $237 before rising again. The coin still holds above key moving averages, showing that the overall upward momentum remains strong.
Critical Levels to Watch
ZEC must stay above the key support level of $245. If it drops below this mark, it could trigger a wave of forced selling at around $244 due to liquidations. This can happen when traders borrow to buy and the price moves against them.
If ZEC falls below this zone, it could reach support near $210.75, a level shown by the 50-period EMA. That would be a notable pullback before any possible bounce back up.
Is ZEC Overbought?
The Relative Strength Index (RSI) on the weekly chart is over 92, the highest ever for ZEC. When the RSI gets this high, it often means the asset is overbought and could pull back. The last time RSI hit 78 in 2021, ZEC dropped almost 70% in the following months.
If ZEC holds the $245 support, however, it might rebound to $307 or even retest its 2021 highs around $375. Analyst Altcoin Sherpa said a dip toward $200 may be a buying opportunity. He noted he’s watching for a price near $230 or lower to possibly re-enter the market.
Source: cointelegraph.com