After losing over half of its value in November, Zcash shows an impressive 40% rebound. However, this recovery remains fragile due to a negative correlation with Bitcoin and critical resistance levels. Achieving a full recovery still requires a further 59% increase.
Zcash is currently going through a delicate phase in its market evolution. After suffering a brutal 55% correction during the month of November, the privacy-focused cryptocurrency is attempting to regain its footing. The recent rally of 40.5% has certainly injected renewed optimism among ZEC holders, but several technical and fundamental indicators suggest that the road to a full recovery remains fraught with obstacles.
At the time of writing, ZEC is trading around $439, coming up against a key resistance level located at $442. This level represents a major inflection point for the continuation of the bullish movement. A confirmed breakout could propel the price toward $520 in the short term, but the ultimate target for a complete recovery sits around $700. To achieve this, Zcash would need to record an additional 59% increase in the coming weeks, a scenario that demands sustained buying pressure and favorable market conditions.
The Relative Strength Index (RSI) constitutes one of the few positive signals in Zcash’s current technical picture. The indicator has moved above the neutral threshold of 50 for the first time in nearly two weeks, demonstrating a renewed confidence in the market. This breakout generally represents an early signal of trend reversal and suggests that bullish sentiment is beginning to regain the upper hand.
However, this technical improvement is not enough to guarantee a complete recovery. The cryptocurrency market remains extremely sensitive to macroeconomic developments, particularly central bank decisions concerning interest rates and capital flows toward risky assets. Even slight fluctuations in global sentiment could slow ZEC’s momentum and compromise its nascent rally.
The RSI’s strength will need to remain sustainably in positive territory to validate a genuine trend reversal. Without this, the risk of a premature loss of momentum remains high, especially if trading volumes do not follow price evolution.
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Gaston has been a writer for over 7 years and a passionate cryptocurrency enthusiast since 2020. He loves exploring the crypto ecosystem and is now dedicated to sharing his insights and discoveries through InvestX.
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