Although the recent upward momentum in Zcash has slowed down, the technical outlook still appears to remain constructive on broader time frames. Despite the uncertainty in the market, it is observed that buyers have not withdrawn completely and the price has formed a tight structure between important support and resistance areas.
Support zone stands out for short-term direction
Analyst TheSignalyst noted that ZEC has been trading within a clearly defined band in recent weeks, and the price has repeatedly reacted between support and resistance areas within this band. According to the analyst, the $300 to $330 range stands out as the main support zone where buyers have stepped in in the past.
It is considered that the current broadband structure remains valid as long as this region is protected. On the other hand, it is emphasized that it is not enough to create an upward expectation just because the support is touched, and that it would be healthier to watch for additional confirmation for a new upward movement.
TheSignalyst said that long-term opportunities can be pursued as long as the support zone remains standing, but it would be better to wait for bullish confirmation rather than blindly buying into support.
It is stated that if the buying pressure gains strength, the next important target may be the psychological resistance area around $ 500. This level stands out as the region where sellers limited the rise in previous attempts.
Buy signals are maintained in the upper time frames
Aggregate technical indicators based on TradingView data point to a “Buy” outlook for ZEC on the weekly chart and a “Strong Buy” outlook on the monthly chart. It seems that the elements that support this chart the most are the moving averages, which stand out in trend following.
Indicators such as RSI, MACD, Stochastic percent K, Williams percent R, CCI and Awesome Oscillator are generally in the neutral zone. This appearance suggests that there is no significant overbought or oversold pressure in the market, and therefore the price has room to determine a new direction.
Mini dictionary: RSI is a momentum indicator that measures the speed and strength of price movement. MACD, on the other hand, monitors the relationship between short- and long-term moving averages and produces signals as to whether the trend is gaining strength.
The fact that the price continues to remain above the 10, 20, 50, 100 and 200 period moving averages indicates that the trend strength is not completely impaired in multiple time frames. Therefore, the current structure is interpreted as a consolidation process rather than a definitive downward reversal.
The $500 to $520 range is watched as the main resistance
Another market assessment also reveals that ZEC has settled into a wider trading range after sharp volatility during the year. It is stated that after the rise from approximately $ 200 to $ 690, the price corrected sharply until around $ 250, and then largely stabilized between $ 360 and $ 520.
In the recent price movements, it was seen that buyer interest increased again in the 360 to 380 dollar region, while the RSI started to recover above the middle line after the weak course, creating a more positive picture regarding the short-term momentum. Still, analysts think that the $500 to $520 band must be surpassed for confirmation of a stronger recovery.
On the other hand, if the daily closings become permanent below $ 380, the current positive structure may weaken and the price may retest the support area near $ 340. For this reason, the focus of the market is on whether the supports can be maintained and what kind of reaction will occur in the resistance area.
