Crypto • ZEC • Technical Analysis
ZEC Drops After Hitting $308: Is the Bullish Momentum Over and a Correction Underway?
Zcash (ZEC) surged to about $308 before starting to retrace, raising questions whether its recent rally has peaked and a correction is beginning.
According to recent data, ZEC reclaimed momentum earlier this week but has since stalled near its previous breakout zone. While the run toward $300+ was impressive, charts now show signs of lost steam—such as an ascending wedge formation and over-extended RSI levels.
Technical signals pointing to fatigue
- The Relative Strength Index (RSI) soared toward 70 during the $308 peak, signaling potential overbought conditions.
- After the $308 test, price rejection and lower highs emerged—classic signs of waning upside.
- Key support zones near $250–$220 are now under scrutiny as the next major testing ground.
Could this be a temporary dip?
Not all signals are bearish. Some analysts argue the pullback could represent a consolidation rather than a full correction. One article points to bullish divergence in money-flow indicators, suggesting the base may still be intact.
If ZEC holds above its short-term support and volume picks up, the next leg toward $340 or higher could still be on the table. But failure to recover swiftly may tilt sentiment toward a deeper retracement.
What to watch
Key levels: A reclaim of $300+ would dramatically improve chances of bullish continuation. A close below $250, however, may signal deeper correction risk toward the $220–$240 range.
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