Can ZCash’s Rally Survive the Trading Volume Bermuda Triangle?

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Ah, ZCash [ZEC], that elusive creature known for its penchant for dramatic fluctuations. Over the past week, it has gracefully pirouetted downwards by a modest 6.68%, much like a cat who has just misjudged a jump onto the kitchen counter. Yet, despite this short-term trip to the depths of despair, there remains a flicker of bullish optimism for our dear privacy token. If Bitcoin [BTC] decides to leap beyond the mystical $70k local supply zone, we might just see some market-wide confidence return-like finding out the milk hasn’t gone sour after all.

According to the ever-vigilant AMBCrypto, ZEC has recently suffered a capital flight from the perpetuals market, akin to a flock of confused geese heading south for winter, amounting to a staggering $52 million. Large liquidations have painted a rather volatile picture of the past month, with price swings resembling a badly executed dance routine.

However, let us not be too gloomy! The growth in shielded supply and transactions is akin to a long-term investment in a burgeoning tea shop; it entrenches the narrative of privacy, which we all hold dear in this chaotic digital age. And speaking of support, the reaction from the $187 long-term support was positively uplifting for the bulls-one might even say it was like finding an old friend at a crowded party.

Why a rebound to $357 is likely

Now, if we consult the daily chart, we find the RSI lingering at a slightly bearish reading of 43. It’s like that one friend who insists on wearing black even at a summer picnic. Meanwhile, the OBV has been doing its best impression of a slumped potato, failing to reach any new highs this February. Together, they present a rather convincing argument for remaining pessimistic.

Yet, the price action tells a different tale, like a bard spinning yarns around a campfire. The imbalance (that white box at $250) and the local former resistance at $251 (the orange one-because why not?) have been bravely tested and defended over the past couple of days. After a courageous stand at $187, the long-term support, we witnessed a brief upward jaunt to $320, only to have it retreat as if it had spotted the tax collector.

But fear not, dear trader! There is potential for this move to extend beyond the lofty heights of $320, like a balloon released into the sky.

The short-term bullish ZCash argument

Taking a closer look at the H4 structure, we note that it has dramatically flipped bullish after reclaiming $251 as support. This level had previously been a local supply zone, much like a well-worn favorite chair in the living room.

While the prevailing swing structure might look somewhat bearish on this timeframe, the current price action suggests there’s still ample room for a deeper upward retracement before the primary bearish move can continue its merry way.

The 61.8% and 78.6% Fibonacci retracement levels are beckoning like a siren to adventurous traders, promising a golden opportunity to dive into the market. Even though the trading volume is lower than a snail’s pace, keep your eyes peeled for a ZCash rally towards $320 and $357-if only to see what happens next!

Traders can consider a low-risk long position from $260 to these resistance levels. Alternatively, they could sit back and wait for a rejection from $357, at which point they might want to go short-just like avoiding the last slice of cake at a party when you know it’s not worth the calories.

Final Summary

  • The ZCash long-term narrative has firmly planted its flag, and the defense of the $187 support adds to the idea of a ZEC comeback-a bit like the underdog in a feel-good movie.
  • As for how high this rebound might soar, well, that remains to be seen. For now, a conservative outlook is advisable-don’t expect the bounce to break any lower timeframe structures. We’re not launching a rocket here, folks!

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2026-02-22 00:17