A breakout above $43.04 could open a path to $54.95, while invalidation lies under $40.
Zcash price has moved up in an otherwise weak market. The price soared 18% over the past week, trading near $43.79. This came after crossing the resistance at $43.04.
While Bitcoin and Ethereum struggled, ZEC showed strength. The move lifted its 24-hour gains to more than 8% and its yearly return to 3.2%.
Though still far from its all-time high near $3,200, the current setup suggests Zcash may have room to climb toward a new local high if momentum holds.
One of the clearest signs of strength has been how buyers have held control without pushing the market into overbought territory.
A useful way to track this is through the Relative Strength Index (RSI), which measures buying and selling momentum on a scale of 0 to 100.
Between July 18 and August 22, ZEC’s price made lower highs, but the RSI made higher highs. This is known as a bullish divergence.
It is a sign that buyers were quietly gaining strength even as prices seemed low.
Currently, the RSI is around 60; above neutral but well below the 70-80 zone often seen before dips or healthy corrections. That means there is still room for the rally to extend before traders face risks.
If the RSI continues to stay in the 60-70 range for some time, creating another higher high in the short period, the ZEC price might rally again. But then, key price zones exist, which the ZEC price pattern will reveal.
Another important shift came from exchange flows. When traders send coins into exchanges, it often signals plans to sell. When they pull coins out, the signs show accumulation and even long-term holding.
During the recent rally, daily inflows of ZEC into exchanges turned negative, hinting at outflows. This shows that more holders are moving coins off trading platforms and into private wallets, reducing sell pressure.
Such moves often align with rally continuation phases, as confidence grows that higher prices are possible.
However, the outflow indicator has only turned red and needs some higher levels for rally continuation.
The key risk here is that if the broader crypto market weakens, sellers might want to book profits. That could negatively impact the ZEC price.
The liquidation map adds another layer to the picture. Current data shows $1.53 million in long positions compared to just $597,000 in shorts.
This means the market is heavily tilted toward longs, nearly two and a half times larger.
That bias is bullish, but it also creates risk.
If the price slips below $42, large clusters of long liquidations could be triggered, accelerating a correction.
This is why the $40-42 range is critical. Holding above this zone keeps the bullish case alive. Dropping below could flip momentum quickly.
For now, ZEC was trading at $43.78 after meeting rejection at $43.04 several times, making it the level to watch.
A successful breakout above this resistance would likely open the path toward the $54.95 target, which represents about 28% upside from current levels.
If that breakout comes with continued outflows and buyer strength, ZEC may retest levels last seen in early 2024.
But the invalidation zone sits just below $40. A breakdown there could spark liquidations and force a deeper pullback.
Also, a ZCash price breach under $33.23 can render the entire structure bearish in the short to mid-term.
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