Zcash (ZEC) dropped sharply after rejection from a key resistance zone, falling over 20% due to strong selling pressure. ZEC price has since stabilized near support and is attempting recovery, while indicators show mixed momentum with weak short-term sentiment but potential for consolidation and gradual upside if support holds.
At the time of writing, ZEC is trading at $440.37 with a 24-hour trading volume of $622.15 million and a market capitalization of $7.35 billion. Following the 2.88% gain over the last 24 hours, the ZEC price structure and improving technicals point to a bullish reversal ahead.
Source: CoinMarketCap
Also Read: ZEC Price Rebounds 41.5% as NU6.2 Upgrade Restores Zcash Network Stability
ZEC Price Rebounds After 20% Drop From Key Resistance
Furthermore, the crypto analyst Team LAMBO highlighted that the ZEC price has faced a rejection as the price tested the resistance between the levels of 480 and 490.
The rejection saw the coin make a sharp pullback by over 20% down to the 400 level, indicating a sell-off in the market at this supply zone.
Source: Team LAMBO’s X Post
The ZEC price is already stable and has begun to make an effort at recovering in price; therefore, the 390 level becomes an important support level for this technical analysis.
So long as the 390 level remains strong, the ZEC price might be able to test the 440 and 490 levels again. The price level of 500 would give an indication of further bullishness in the coming period.
RSI and EMAs Point to Improving Sentiment
According to TradingView, the ZEC price points to an important macro bullish trend before experiencing an aggressive pullback in June. The ZEC price, which hit a high of nearly $650, saw a significant decline but is now trading at $438.38 and remains stable.
The current levels are witnessing strong resistance from both the 20 and 50 EMAs yet also encountering immediate support above the 100 and 200 EMAs.
Source: TradingView
The Relative Strength Index (RSI) captures this trend reversal, falling sharply from the overbought region, which lies above 80, to below 30.
Even with the current uptick around the value of 44.38, the RSI stays beneath its yellow warning level. This implies that although the ZEC price is no longer under selling pressure, it continues to consolidate below the midline level.
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
Also Read: ZEC Price Forecast: Bulls Target $490 Resistance Before Possible Surge to $700
