Despite the strong rally, ZEC still trades below the broader bullish range, keeping resistance rejection risks firmly in play.
Zcash (ZEC) price is rising sharply today, climbing nearly 23% to trade around $281.61 after consolidating below the $240 range for several sessions. The breakout marks a notable shift in momentum, especially as the broader crypto market had turned sluggish alongside Bitcoin’s sideways action. Fresh U.S. CPI data, which came in lower than expected, eased inflation concerns and reduced macro pressure, triggering renewed buying interest across risk assets and lifting several altcoins out of short-term bearish ranges.
Despite the strong surge, ZEC still trades below a key higher-timeframe resistance zone, keeping the risk of a rejection in play. The next few sessions will be critical in determining whether this move develops into a sustained uptrend or stalls near resistance.
Zcash’s derivatives data shows a notable shift in positioning. The funding rate remains slightly negative to neutral, suggesting long positions are not overcrowded and traders are not aggressively paying to stay long. At the same time, open interest has rebounded sharply to around $230 million after a steady decline through late January.
This combination typically signals fresh positions entering the market without excessive bullish leverage. For traders, that’s often a healthier structure than a rally driven by extreme positive funding. If the ZEC price is rising alongside this open interest expansion, it indicates new capital is supporting the move rather than just short covering.
However, rising OI also increases volatility risk. If price stalls near resistance, liquidations could trigger sharp swings. Sustained upside will depend on spot volume confirming the derivatives-driven momentum.
Zcash (ZEC) is attempting a technical recovery on the daily chart after defending the rising 200-day SMA near $278. Price has rebounded toward the $300-$305 resistance zone, which aligns with a key horizontal supply level and the descending trendline that has capped rallies since November. This makes the current region structurally decisive.
Volume has improved during the bounce, suggesting genuine buying interest rather than a weak relief move. Meanwhile, RSI (14) is recovering from near-oversold territory and pushing toward the midline, signaling improving momentum but not yet confirming a full bullish reversal.
For traders, a decisive daily close above $305 could open the path toward $340 and $380. However, failure at this resistance may trigger another rejection toward the $250-$260 support. The next breakout or breakdown from this compression zone will likely define ZEC’s medium-term trend direction.
For Zcash (ZEC) to reach $500, the current rebound must evolve into a confirmed trend reversal rather than a short-term relief rally. A sustained breakout above the $300-$305 resistance zone would be the first signal of structural strength. From there, bulls would need to reclaim $340 and $380, followed by a higher high above the descending trendline that has capped prices since November.
A move toward $500 is technically possible, but it would require strong spot demand, expanding volume, and continued macro support. Without a decisive shift in higher-timeframe structure, the probability of rejection remains elevated.
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