While many altcoins are still struggling to recover from the recent crypto market downturn, Zcash (ZEC) appears to be on a different trajectory. The privacy-oriented token has surged nearly 74% in the past week, maintaining its strength as others falter.
This resilience is not driven by speculation but rather by solid confidence. Both large investors and retail traders are quietly capitalizing on dips, and ZEC’s price chart suggests that momentum still has room to grow. However, this potential for upward movement brings certain risks as well.
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Buyers Refuse to Back Down as Money Keeps Flowing In
Zcash’s buying momentum has remained steady even amidst overall market panic. Both institutional and retail activity have shown resilience, unlike the typical behavior of these two segments during downturns.
The Money Flow Index (MFI), which measures buying strength and trading volume, is above 95, indicating that traders are still purchasing at higher levels.
Simultaneously, the Chaikin Money Flow (CMF), which reflects institutional activity, stays positive around 0.25, affirming that major players have not retreated.
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These trends explain the sharp rebound of ZEC’s price after a brief dip to $150 on October 10 (at the height of the crash).
Buyers swiftly absorbed the decline, pushing the ZEC price back to nearly $290. This consistent influx of capital—from both retail investors and large holders—has sustained Zcash’s uptrend, even as much of the market turned bearish.
Nonetheless, the CMF hasn’t yet returned to its early-October highs. This indicates that while buying remains robust, full-scale institutional support has not yet fully resumed. If large money flows return, Zcash’s price rally could easily extend further.
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Leverage Traders Could Be the Spoiler
The primary risk for Zcash’s price at this time lies within the derivatives market. Data from Bybit’s ZEC/USDT liquidation map reveals a strong bias toward long positions—$21.49 million in cumulative long leverage against just $3.43 million in shorts.
This indicates that the majority of traders are anticipating ZEC’s price will continue to rise. However, if the price were to suddenly drop to around $178, those leveraged longs could face liquidation, triggering a wave of forced selling akin to what precipitated the recent broader market crash.
Thus, while spot buying remains strong, leverage traders may be creating a pressure point that could induce short-term volatility should market sentiment shift.
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Can Zcash Hold Its Ground Above $250?
Zcash’s daily chart indicates that the rally is still technically sound. The token is trading within an ascending triangle, with Fibonacci levels offering solid structure. As of now, ZEC is around $287, with immediate support near $251.
If the price can hold this level—and if buying pressure continues from retail and large investors—ZEC could aim for $331, the next resistance level. Closing above that would likely pave the way to $461, perpetuating the strong rally.
However, if leveraged positions begin to unwind, the initial fallback zones are around $223 and $170. These would be crucial areas for dip buyers to re-enter if the rally begins to cool.
