Zcash Surges 16% But Faces Key Resistance Levels
The cryptocurrency market witnessed a significant move as Zcash (ZEC) jumped by 16%, trading at $397 according to CoinMarketCap. Despite the bullish sentiment and momentum, liquidity patterns suggest caution, with critical resistance levels yet to be cleared.
Momentum Driving Zcash
Strong intraday momentum has propelled Zcash upward, and buyers have extended their efforts to break through resistance levels. Trading volume spiked by 45%, reaching $965 million, highlighting greater participation in the ongoing rally.
Recent analysis revealed that ZEC attempted to breach the $383 resistance following a downtrend that began on November 20th. However, consistent rejections near this level have weakened the overall structure. A daily close above $385 is crucial to opening the path toward the next significant resistance at $480.
Mixed Technical Indicators
Technical indicators are painting a mixed picture. The Average Directional Index (ADX) stood at 22.91, indicating weak trend strength despite the sharp price movement. On the other hand, the 200-day Exponential Moving Average (EMA) remains below the current price, providing support for a bullish trend.
Data from CoinGlass highlighted strong long-side positioning by intraday traders. Liquidation zones are forming at $366.4 on the lower side and $407.4 on the upper side, marking critical support and resistance levels within this range.
Exchange Flows Hint at Caution
Zcash’s exchange activity raises potential caution among traders. Over the past 24 hours, $12.18 million in inflows were recorded on CoinGlass’s Spot Inflow/Outflow data. This indicates that some holders are preparing for profit-taking as the price approaches resistance zones.
Conclusion: What’s Next for Zcash?
Zcash’s recent surge has been impressive, but traders need to approach with caution. Clearing the $385 resistance remains a key challenge that could unlock further upside potential towards $480. However, profit-taking activities and mixed technical indicators could play a significant role in influencing the price trajectory.
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