TL;DR:
- The price of Zcash (ZEC) is compressed below a descending resistance line, currently trading around $387.
- Following a failed rebound toward $400, the market shows decreasing volatility and an absence of accumulation volume.
- Analysts warn that if key levels are not reclaimed, the risk of dropping toward the $330 support zone remains active.
On wednesday session, Zcash experienced a critical inflection point as its price action narrowed dangerously. Currently, the price of Zcash under technical resistance reflects a 2.5% daily drop, following a recovery attempt that failed to consolidate above psychological barriers.
For investors, this is a significant scenario, as the asset has stopped moving freely and entered a volatility contraction range. Consequently, the sector is bracing for an imminent directional decision as trading bands become more clearly defined on short-term charts.
Market Structure and Risk Levels for ZEC
In higher-timeframe analysis, ZEC remains trapped within a descending wedge that favors sellers. Although selling pressure has temporarily lost momentum, constant rejections below the trendline reinforce a defensive posture in the market.
For the outlook to shift toward a constructive perspective, Zcash needs to reclaim and hold the $400 level with significant buying volume. Otherwise, any upside attempt will be considered merely corrective, keeping the door open for a retest of the minimum supports in the $330 to $335 range.
In summary, the lack of a clear capitulation or a confirmed recovery keeps participants in a waiting phase. The ultimate price direction will depend on a breakout from the current wedge boundaries, requiring patience from traders ahead of this looming decision point.
