Zcash Price Bounce Potential: Analyst Predicts Relief Rally from 0.618 Fib Support

In recent trading, Zcash has found stability at the crucial 0.618 Fibonacci support level, with analyst Altcoin Sherpa predicting a potential relief rally if buyers successfully maintain this level and trading volume confirms renewed demand.

Key Takeaways

Zcash's price has stabilized at the 0.618 Fibonacci support level.
The cryptocurrency is currently trading around $363.02, showing a 24-hour gain of approximately 10.2%.
Altcoin Sherpa identifies a potential bounce setup for swing traders.
A rebound is realistic if Zcash maintains its position above the 0.618 support.
Selling pressure appears to be easing, allowing room for a bounce.

Zcash price chart highlighting bounce setup from 0.618 Fibonacci support

Zcash Price Stabilization

After experiencing a significant decline in early December, Zcash has begun to stabilize near a key technical support region. Priced at around $363.02, it has gained about 10.2% in the last 24 hours, reflecting a notable recovery after a period of decline. The privacy-focused cryptocurrency's price trajectory reveals it experienced a steep drop from November's highs, forming a rounded bottom structure as it produced lower lows based on chart data. Increased trading volume during these intraday recoveries indicates that demand might be returning to the market.

Following the December downturn, buyers reentered the scene, resulting in a V-shaped rebound. This uptick in Zcash’s price corresponds with the 0.618 Fibonacci retracement level, a crucial technical indicator closely monitored by traders engaging in swing-trading strategies.

Key Support Level Insights

According to cryptocurrency analyst Altcoin Sherpa, the current market structure creates an excellent opportunity for swing traders searching for a mid-term rebound. Sherpa emphasizes the importance of the alignment between the recent price pullback and the 0.618 Fibonacci level, which often draws technical traders looking for signs of an oversold market to execute reversals. While Sherpa does not expect a return to all-time highs, he suggests a relief rally is possible in light of the current pullback.

The analyst notes that if the market can maintain above the 0.618 level, a rebound seems plausible given past volatility and the extent of previous corrections. He warns that if Zcash falls below this Fibonacci level, it could trigger further downside movement.

Technical analysis of recent price behavior highlights a series of swing-low patterns, including a sharp drop to a significant Fibonacci level, an intraday price recovery accompanied by rising volume, a transition from selling to gradual accumulation, and the formation of higher lows on shorter timeframes.

Momentum Shifts and Market Sentiment

After reclaiming a mid-range price level, Zcash has continued upward toward its current recovery point, suggesting a potential decrease in selling pressure. This shift could create an opportunity for a technical bounce, particularly as primary resistance levels are situated at previous breakdown points.

Currently, Zcash trades within a favorable technical area for bounce traders. An explicitly defined invalidation point coupled with the Fibonacci confluence supports the possibility of a relief rally, especially if overall altcoin sentiment remains positive alongside Bitcoin’s recent recovery.

Sherpa’s analysis emphasizes a disciplined swing trading approach as opposed to a long-term bullish outlook. Should Zcash continue to hold above the 0.618 Fibonacci region, the chances of advancing toward higher mid-range levels will likely improve, according to the analyst.