Zcash Surges 16%: Liquidity Concerns and the $385 Resistance Challenge

Zcash has shown a positive shift in market sentiment as the overall crypto landscape bounces back, with buyers pushing a recent breakout attempt. A notable increase in intraday momentum along with a rise in long-side positions has intensified the bullish trend for Zec holders.

Key Takeaways

Zcash (ZEC) saw a 16% rise, bringing its price to $397.
Trading volume surged by 45%, reaching $965 million.
The $385 level represents a critical hurdle for ZEC, with potential upward movement towards $480 if surpassed.
Mixed signals from technical indicators suggest caution among investors, particularly regarding trend strength.
A significant amount of trading activity indicates profit-taking pressures as ZEC approaches its resistance levels.

Zcash (ZEC)

ZEC Price Tests a Significant Hurdle

Analysis of Zcash's daily chart reveals attempts to breach the critical $383 resistance level, an effort to break the downtrend that commenced on November 20.

Zcash price action and upcoming level

Source: TradingView

Despite testing this resistance level across six sessions, ZEC has struggled to maintain a close above it, leading to further weakness in market structure. A daily close above the $385 threshold could pave the way toward $480, which is where the next significant resistance lies. Conversely, failing to surpass $385 would undermine the current breakout prospects.

Current technical indicators exhibit a mixed outlook. The Average Directional Index (ADX) is at 22.91, indicating a lack of trend strength despite ZEC's significant price increase. Additionally, the 200-day Exponential Moving Average remains below the current price, suggesting support for the overall trend.

Mixed Sentiments in Derivative Data

Data from CoinGlass indicates a strong inclination toward long positions among intraday traders.

ZEC’s notable liquidation zones are positioned at $366.4 on the downside and $407.4 on the upside, defining the intraday support and resistance levels for derivatives traders.

ZEC Exchange Liquidation Map

Source: CoinGlass

Funding Rates have risen to 0.0064%, supporting a bullish sentiment across major trading platforms.

ZEC Spot Inflow/Outflow

Source: CoinGlass

However, ZEC’s exchange inflows hint at potential selling pressure. CoinGlass reported $12.18 million in inflows over the last 24 hours, indicating that some investors may be looking to realize profits as the price nears resistance once again.

Conclusion

In summary, Zcash has made notable progress with a recent price surge of 16%. However, traders should approach the $385 resistance level cautiously, keeping an eye on market signals and profit-taking behaviors. The next few trading sessions will be pivotal in determining if ZEC can establish a more sustained upward trend or if it will face challenges ahead.