Will Zcash’s ZEC Reach $500 or More by December?

Zcash (ZEC) continued its upward momentum on Tuesday, gaining 10.29% in the last 24 hours to surpass $425, reflecting a 41.50% increase from the $300 lows recorded a week ago.

Key takeaways:

• ZEC targets $500 as double-bottom indicators and whale accumulation aid the recovery.

• Bear-flag risks remain, with an overbought RSI suggesting a potential pullback to the $260–$280 range.

The notable recovery led some analysts to predict a further rise to or above $500 in the near future.

Can Zcash break through the psychological barrier?

Could ZEC move from double bottom to $500 next?

Trader Goomba identified the recent swing lows of Zcash as a potential double-bottom pattern.

This formation appeared in the $300–$310 zone, where ZEC recorded two comparable troughs within a brief period. The subsequent rise above the interim resistance near $380 marked what the trader referred to as a neckline breakout.

Such patterns come with a target objective placing the next significant milestone in the $480–$500 area, aligning with a previous supply zone.

Goomba pointed out that the structure remains valid as long as ZEC stays above the reclaimed neckline level.

Zcash whales are taking on selling pressure

ZEC’s retail investors ($0–$1,000) and mid-sized traders ($1,000–$100,000) cut net exposure by over $30 million during the recent rebound, as per data mentioned by trader Ardi.

Conversely, larger whale accounts ($100,000–$10 million) added over $100 million during this timeframe, indicating a divergence in actions.

In essence, smaller participants seemed to sell during the rally while larger accounts increased their investments.

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This raises ZEC’s likelihood of continuing its upward trajectory toward the $500 level, given that larger investors are anticipating higher prices.

Bear flag could dampen prospects for ZEC bulls

The recent rebound in Zcash unfolded within what appeared to be a traditional bear flag pattern—a declining relief channel that formed following a steep drop in November.

Historically, these ascending channels have tended to resolve downward, and ZEC’s inability to maintain its position above the flag’s upper trendline indicated that sellers were beginning to reclaim control by Tuesday.

The price also faced challenges in breaking above the 200-day exponential moving average (200-4H EMA; the blue wave), reinforcing the bearish continuation scenario.

Simultaneously, ZEC’s relative strength index (RSI) climbed above the overbought level of 70, a zone where upward momentum often diminishes.

These indicators collectively suggested that a breakdown from the flag could open the path to a decline toward 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.