Zcash (ZEC) continued its upward trend on Tuesday, increasing by 10.29% in the last 24 hours to surpass $425, marking a 41.50% rise from the approximately $300 low recorded a week ago.
Key takeaways:
ZEC targets $500 as double-bottom formations and large-scale buying bolster the recovery.
Bear-flag risks remain, with an overbought RSI indicating a potential pullback towards the $260–$280 range.
The strong rebound led some analysts to predict a further rally to or above $500 in the days ahead.
Will Zcash retest this psychological resistance?
From double bottom to $500 ZEC next?
Trader Goomba identified Zcash’s recent swing lows as potential double-bottom patterns.
This pattern appeared to form in the $300–$310 range, where ZEC noted two comparable troughs in a brief time. The subsequent rise past the interim resistance around $380 signaled what the trader called a neckline breakout.
Such formations have a calculated target that positions the next significant target in the $480–$500 area, aligning with a past supply zone.
Goomba emphasized that the structure stays valid as long as ZEC remains above the reclaimed neckline level.
Zcash whales are absorbing selling pressure
ZEC’s smaller holders ($0–$1,000) and mid-tier traders ($1,000–$100,000) have reduced their net exposure by over $30 million during the recent upswing, according to data shared by trader Ardi.
Conversely, larger whale accounts ($100,000–$10 million) have increased their holdings by over $100 million in the same timeframe, indicating a behavioral divergence.
In simple terms, smaller participants seemed to sell into the rally while larger investors increased their stakes.
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This trend enhances ZEC’s potential to maintain its upward trajectory towards the $500 mark, as larger investors anticipate rising prices.
Bear flag may hinder ZEC bulls
Zcash’s recent rebound unfolded within what still looked like a classic bear flag pattern, a weakening relief channel formed after a sharp sell-off in November.
Historically, these ascending channels tend to resolve downwards, and ZEC’s inability to sustain above the flag’s upper trendline indicated that sellers were regaining control as of Tuesday.
The price also struggled to surpass the 200-day exponential moving average (200-4H EMA; the blue wave), reinforcing the bearish continuation signal.
Additionally, ZEC’s relative strength index (RSI) has pushed above the overbought level of 70, a zone where upward momentum frequently diminishes.
Collectively, these indicators suggested that a breakdown from the flag could pave the way for a move towards the $260–$280 area, approximately 35% below current price levels.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision. While we strive to provide accurate and timely information, Cointelegraph does not guarantee the accuracy, completeness, or reliability of any information in this article. This article may contain forward-looking statements that are subject to risks and uncertainties. Cointelegraph will not be liable for any loss or damage arising from your reliance on this information.
