Zcash’s native asset, ZEC, traded around $477.97, up more than 11 percent in the last 24 hours. The recovery in price comes after a recent sharp selling wave that extended to the $250 region. The increase in transaction volume also indicated that buyers were back in action.
Recovery is strong, but resistance zone stands out
In the short-term view, ZEC approached $478 again after falling to around $420 in the last 24 hours. Although this rapid reaction shows that the buying interest continues after the decline, the market has now entered a more difficult region. If the range between $450 and $480 cannot be maintained, the recent rise may be considered as a weak comeback.
Although the recent recovery in ZEC is notable, the reaction of the price in the macro retest zone between $450 and $470 could be decisive in terms of the next direction.
Thresholds followed by analysts
The higher timeframe chart shared by Ardi revealed that ZEC lost several key short-term support levels following the previous strong rally. Accordingly, the price is now trying to return to the macro retest area between $450 and $470. This region is technically important as it has previously stood out as the area where the breakdown accelerated downwards.
If this area is not overcome, there is a risk of a new retreat towards the old breakout pivot in the 250 to 260 dollar band. On the other hand, the $350 level is also watched as critical support. As long as the price remains above this level, it can be argued that the current move is a correction after a strong rise. However, below $350 could be a sign of deeper weakness.
Rising wedge warning in the short term
CryptoJack stated that a rising wedge formation has formed on the lower time frame chart. In technical analysis, this structure can be seen in periods when momentum gradually tightens while the price continues to rise. Although it is noteworthy that ZEC climbed from the $ 290 region to approximately $ 460, the fact that the candles are stuck at the top of the formation shows that the upward movement needs confirmation.
Mini dictionary: A rising wedge is a formation in which the price is squeezed between two increasingly narrowing trend lines while moving upwards. In most cases, it indicates weakening momentum and the risk of a downside breakout is closely monitored.
For the bulls, a clean break and continuation move above the $460 to $480 range is considered important. If this does not happen, if it falls below the wedge support, the possibility of a retreat to $ 420 first and then to the $ 380-350 region may remain on the table.
Ironwood update boosts trust
The recovery is not only driven by the technical outlook. According to Coin Bureau, Zcash developers have completed the Ironwood update and implemented regulation aimed at reducing the risk of unlimited fake ZEC production in the sandbox called Orchard. Zcash is known as a privacy-focused cryptocurrency network.
The pressure following concerns about the Orchard vulnerability quickly eased with the completion of the fix. ZEC has recovered more than 80 percent from its intraday low around $252. Analyst Eunice D Wong also pointed out that the price rose above $400 again after falling sharply from $650 to $250. On the other hand, it is stated that the $ 480 and $ 520 region must be exceeded for the rise to become permanent, otherwise the expectations for $ 500 and then $ 928 may weaken.
