ZCash (ZEC) is making a strong comeback after confirming a precise technical rebound on its daily Order Block. Despite showing significant buy signals for the first time since summer, a worrying divergence between price action and actual volumes could turn this rally into a trap for bulls. Keep an eye on critical levels amidst whale accumulation and massive distribution in the coming days.
The recent price action on ZCash is a textbook case of respecting market structure. After a correction, ZEC found solid footing by testing its daily Order Block at $285. This level acted as an immediate springboard, propelling the price toward the current zone of $360.
Even more interesting for technical analysts, the 16-hour timeframe chart delivered two successive buy signals within a few days. This is a notable event, as this setup hadn’t occurred since August 2025, suggesting that buyers are attempting to regain control of the medium-term momentum.
On-chain data corroborates this attempted recovery: the Delta is positive (+1.06), indicating that whales are attempting to intervene to force the bounce. However, detailed analysis of the order book reveals a much more complex and potentially bearish reality in the short term.
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This is where things get problematic. Despite the apparent optimism of momentum indicators, the volume profile tells a story of aggressive distribution. At the precise moment when price touched the resistance pivot at $380, sellers massively absorbed the demand.
The numbers are indisputable: sell volume (18.7 million) was nearly triple the buy volume (6.1 million) during the test of this zone. Concretely, this means that for every buyer entering the market, three sellers are present to liquidate their positions. We’re witnessing a phase of heavy distribution in a supply zone.
This dynamic suggests that sellers are using the liquidity provided by whales and late buyers to unload their bags. It is mechanically impossible to initiate a short squeeze or sustainable bullish continuation when selling pressure saturates the order book in this way.
The current situation places ZEC at a crossroads. The $380 zone is indisputably the most important level to reclaim to validate a bullish recovery.
If the market manages to absorb selling pressure and ZEC holds firmly above the $384-$395 zone, the bearish structure would be invalidated. In this breakout scenario, the path would be clear to target a first technical objective at $580. An extension of the move would then allow testing the previous high, with an ambitious target at $740.
Conversely, if the failure below $380 is confirmed and whale attempts only serve as exit liquidity for the bears, the correction risk is severe. Loss of the psychological support at $300 would validate buyer exhaustion. The price would then mechanically move toward its next 3-day Order Block located around $225, erasing a large portion of recent gains.
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Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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