Zcash Flips Cardano After a Massive Rally
With its recent spectacular surge of 65%, Zcash has achieved the feat of surpassing Cardano in terms of market capitalization. Currently trading in a price zone between $560 and $580, ZEC is benefiting from a massive influx of capital and a renewed institutional interest in privacy coins.
Meanwhile, Cardano (ADA) is dangerously stagnating in a range between $0.26 and $0.28. Despite a historical support around $0.25, the asset is struggling to attract investors amidst the frenzy surrounding Zcash. This unexpected flippening highlights a brutal narrative shift, where capital is rapidly moving toward assets offering more aggressive momentum.
Can ZEC Sustain This Bull Run Against Resistance Levels?
From a technical standpoint, the Zcash chart displays a bullish structure. Following this impressive breakout, the price is now approaching a critical resistance zone. Analysts are closely watching the $698 level, which represents the top of the current channel and the next major hurdle before considering a return to its ATH. The FBB indicates a potential target up to $780.
However, caution remains advised. Momentum indicators, such as the RSI and the MACD, are signaling an obvious short term overheating. A correction or a slight retracement toward previous support levels cannot be ruled out if sellers decide to take profits after this meteoric rise.
The liquidations map shows a massive cluster of longs at $500. This level has a high probability of being swept. However, the question is whether ZEC will head north first before dropping to $500 or vice versa.
It is in this context that the short term POC at $568 is crucial. ZEC must close its 4 hour candles above this level to maintain its bullish course.
How High Can the Price of Zcash (ZEC) Go?
If buying pressure holds and ZEC manages to break the $698 resistance, a new bull run could propel it close to $800, or even $900 if the momentum is strong. This scenario would validate an extremely powerful trend continuation, attracting even more liquidity into the privacy cryptocurrencies market.
Conversely, a bearish scenario would see the token face immediate selling pressure, bringing its price down to test lower liquidity zones down to $500. The question is no longer just whether Zcash has pulled off a stunning move, but whether it has the strength needed to consolidate this new dominant position against Cardano.
Furthermore, it is worth highlighting an important fact pointed out by the trader Killa. Every ZEC pump has corresponded to a local top for Bitcoin. So, is this curse finally going to end?
Should You Buy?
For now, ZEC is in a consolidation phase following a lightning rally toward $600. As noted by analyst Enri, ZEC has formed a bearish supply zone at $640. According to him, the $496 target is a priority from a structural standpoint.
But moving forward, he is still targeting $740 to $840 for the completion of the bullish cup and handle pattern that has formed on ZEC. In short, patience is key. It is better to wait for a retracement to $500 and for those longs to be liquidated before entering ZEC. Subsequently, one must be cautious regarding the structure of Bitcoin if it reaches this $500 level.
In conclusion, ZEC still has upside potential in the medium term. However, the short term is under the threat of a pullback to $500.
Sources:
- TradingView
- Killa on X
- Enri on X
- MMT
- U.Today
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