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

Zcash (ZEC) continued its upward trend on Tuesday, increasing by 10.29% over the last 24 hours to surpass $425, marking a 41.50% rise from approximately $300 just a week prior.

Key takeaways:

• ZEC aims for $500, supported by double-bottom signals and whale accumulation.

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

The pronounced rebound has led some analysts to predict a further rise to or beyond $500 in the upcoming days.

Will Zcash revisit the psychological resistance?

From double bottom to $500 ZEC next?

Trader Goomba recognized Zcash’s latest swing lows as a potential double-bottom formation.

This pattern emerged around the $300–$310 area, where ZEC established two similar troughs within a brief period. The move above the interim resistance close to $380 indicated what the trader called a neckline breakout.

Such patterns typically have a measured objective that sets the next significant target in the $480–$500 region, coinciding with a former supply zone.

Goomba noted that the structure remained intact as long as ZEC stayed above the reclaimed neckline level.

Zcash whales are absorbing selling pressure

Retail holders of ZEC ($0–$1,000) and mid-sized traders ($1,000–$100,000) reduced their net exposure by more than $30 million during the recent rebound, according to data pointed out by trader Ardi.

In contrast, larger whale accounts ($100,000–$10 million) increased their holdings by over $100 million during the same timeframe, indicating a disparity in sentiment.

In simpler terms, smaller market participants seemed to sell into the rise while larger capital accounts expanded their positions.

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This dynamic heightens ZEC’s potential to continue its ascent toward the $500 mark, as larger investors anticipate higher prices.

Bear flag may spoil party for ZEC bulls

Zcash’s recent upswing materialized within what still seems to be a classic bear flag pattern, a weakening relief channel formed after a significant sell-off in November.

Historically, such rising channels tend to resolve downwards, and ZEC’s inability to maintain above the flag’s upper trendline indicated that sellers were regaining control as of Tuesday.

Price also struggled to surpass the 200-day exponential moving average (200-4H EMA; the blue wave), reinforcing the bearish continuation setup.

Simultaneously, ZEC’s relative strength index (RSI) rose above the overbought threshold of 70, a territory where upward momentum frequently diminishes.

Combined, these indicators suggest that a breakdown from the flag could lead to a move toward the $260–$280 region, 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.