Zcash (ZEC) ignores the correction and continues its rally
The cryptocurrency market is currently being shaken by high volatility, dragging many assets into a severe correction. Yet, Zcash (ZEC) is showing a spectacular decoupling. Trading at a current price of $587, the token has recorded an increase of over 2% in the last 24 hours, completely ignoring the prevailing sentiment of fear.
This relative strength demonstrates that the asset is benefiting from an independent capital flow. Investors seem to be turning to privacy focused cryptocurrencies, offering ZEC a true contrarian rally. This unique movement is capturing the attention of traders looking for breakout opportunities outside the traditional market leaders.
Currently, ZEC is facing its 4 hour order block. If it clears this $593 level with volume, ZEC will head straight for the $630 to $660 range in the following hours. This represents a potential upside of nearly 10% if the breakout is validated.
The 4 hour RSI has not yet reached the overbought zone and Bitcoin seems to be heading towards $78,000, which would leave plenty of room for a ZEC breakout.
Is the $500 support the bottom?
For this local bull run to continue, technical analysis highlights the 50 EMA curve as a crucial support in this ZEC bull run. Indeed, ZEC has retested it three times before launching a new local rally.
If ZEC faces a short term rejection from the resistance between $630 and $690, a return to this zone around $545 will be possible in the following days. In any case, it will be necessary to monitor this 50 day moving average which offers a solid entry point in this bullish phase for ZEC.
As long as the price remains above this zone, the market structure remains favorable to the bulls. On the other hand, a retracement below $500 would invalidate this optimistic setup. A breakdown of this level could trigger cascading liquidations and drag ZEC back into a complicated bearish trend.
Can Zcash smash through the $690 resistance?
The target is now crystal clear for buyers: the local top of $690. A confirmed breakout above this key resistance could act as a powerful catalyst, attracting new buying volume and propelling the price toward $800 to $900, levels that remain unexplored.
From a liquidity perspective, a cluster of longs is located up to $634. If the price reaches this level, the price reaction will need to be monitored. If the price retraces after liquidating the shorts at this level, then it could well be just a stop loss hunt and the smart money might decide to defend this resistance zone to go after the longs accumulated below.
In short, traders must remain vigilant regarding potential profit taking as the price approaches this glass ceiling. Volatility could intensify in this liquidity zone. Faced with this explosive technical setup, does Zcash have the necessary momentum to take off and smash through $690 this week, or will it suffer a brutal rejection from sellers?
Although the short term may be tense, Zcash arguably has the best long term structure in the crypto market. Every return to the 50 day moving average is an ideal entry point. Provided that the structure remains bullish.
Moreover, according to a harmonic pattern revealed by CoinsProbe, Zcash could even reach $800 in the coming weeks. This is a situation to follow closely as whales only have eyes for ZEC and HYPE.
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