TL;DR
- Ceasefire rally: Zcash jumped after the US-Iran ceasefire announcement, briefly hitting $336.50 before settling near $332 with nearly 25% gains.
- Technical structure: Zcash is repeating its 2021 pattern, holding support near $197 while testing a descending trendline that could either trigger a breakout toward $370 or confirm a bull trap.
- Liquidation risks: Heatmap data shows heavier long liquidations below $260 and a major pocket at $305 to $306, signaling potential downside pressure if momentum weakens.
Zcash surged after President Donald Trump announced a two-week ceasefire deal with Iran, sparking a relief rally across global risk markets. The privacy-focused token briefly climbed above $336.50 following the news, marking its strongest level since January. Zcash now trades near $332, up almost 25% on the day, as traders reassess short-term momentum and compare the move with patterns seen during previous market cycles.
Zcash Rebounds Toward Key Fibonacci Levels
ZEC has started to mirror the structure that formed after its 2021 peak near $392. During that period, the token repeatedly bounced from its 0.238 Fibonacci retracement level around $85 before losing strength under a descending trendline. The current rebound shows similar behavior, with Zcash finding support near its 0.236 Fib level around $197. A continued push could send Zcash toward its 0.5 Fib level near $370, which aligns with the same trendline that capped upside attempts in prior cycles.
Bull Trap Risks Echo the 2021 Setup
Despite the strong reaction to the ceasefire announcement, Zcash faces the risk of repeating its earlier bull trap pattern. If buyers fail to break above the descending trendline, momentum could fade and expose the token to a pullback toward the $197 to $200 support zone. This would closely resemble the weakening structure that formed in 2021. A successful breakout, however, may confirm a falling wedge reversal with a measured target near $1,200, a level some analysts have previously highlighted.
Liquidation Heatmap Shows Heavier Downside Pressure
Zcash’s liquidation heatmap suggests greater downside risk in the near term. Binance’s ZECUSDT contracts show that roughly $3.81 million in cumulative short liquidations sit above $380, while about $50.56 million in long liquidations cluster below $260. Markets often gravitate toward areas with heavier liquidation density, and for Zcash, the larger concentration lies beneath current prices. This dynamic increases the probability of volatility if sentiment shifts.
Key Levels Traders Are Watching Next
The heatmap also identifies the $305 to $306 range as the largest single liquidation pocket, with about $1.76 million in leveraged positions concentrated there. That zone now serves as an important near-term marker for Zcash traders evaluating whether the current rally can extend or if pressure from long liquidations will dictate the next move.
