Zcash (ZEC) price action remains constructive despite the weakness shown in the short term, according to analyst Ananda Banerjee. Although the asset is up nearly 40% in the last 30 days, Zcash breakout possibilities have been hampered recently by an 8% weekly drop. This divergence occurs while Bitcoin continues its ascent, highlighting a negative correlation that has historically delayed the bullish movements of this privacy asset.
Despite the pullback, the bull flag pattern remains intact on the long-term technical charts. The projection of an 85 percent rally remains in effect as long as the price respects the critical support levels. However, the Chaikin Money Flow (CMF) shows warning signs as it approaches the zero line. This metric suggests that capital is flowing out of the asset as buyers lose strength in the current trading sessions.
On the other hand, the recent unshielding of approximately 202,000 ZEC, equivalent to 1.2% of the circulating supply, has increased supply visibility. This movement of funds could amplify downward pressure if demand fails to absorb the available volume. Therefore, the $404 level becomes the most crucial point to defend. A break below this mark would invalidate the bull flag structure and weaken the recovery thesis for the tecnologÃa blockchain.
The crossroads between short-term pessimism and veteran investor optimism
Likewise, the derivatives market reflects a clear division between short and long-term traders. Short position liquidations exceed fifty million dollars on the Binance seven-day heat map. However, the thirty-day view favors buyers with a 33% leverage advantage. This disparity indicates that experienced traders expect an upward continuation despite the immediate volatility of the cryptographic market.
On the other hand, the negative correlation of -0.66 with Bitcoin remains the main antagonist for the price takeoff. Zcash tends to weaken when the king coin consolidates or shows excessive strength against altcoins. Therefore, confirmation of a real breakout will only occur if the price manages to clear the $519 barrier. Surpassing $541 would trigger massive liquidations that would accelerate the momentum toward much higher price targets.
Is independence from Bitcoin the necessary factor for ZEC to achieve its bullish explosion?
In this way, time seems to be the only factor missing for the bullish cycle to complete satisfactorily. Investors must closely monitor the behavior of large holders following the recent movement of unshielded tokens. In this manner, the downside risk remains defined but limited by the strong accumulated institutional buying interest. Stability above key supports will be fundamental to keeping the hopes of criptocurrencies enthusiasts alive.
To conclude, Zcash is in a phase of healthy but tense consolidation compared to its competitors. The success of the projected rally will depend on a favorable capital rotation and the breaking of the current correlation. It is vital that bulls manage to regain momentum before money flow indicators confirm a massive exit. Zcash breakout possibilities remain high, but the road to 85% gains requires patience and technical confirmation.
