Zcash (ZEC) Price: Rebounds 35% – What To Expect In December?

TLDR

• Zcash (ZEC) rebounded 20% after dropping 55% from its recent highs and is attempting to reclaim the $375 resistance level
• The price bounced at the 0.618 Fibonacci retracement support level, a common technical bounce point during downtrends
• Technical indicators RSI and MACD show potential for a short-term breakout that could push prices toward $475
• Long-term structure remains bearish after breaking down from an ascending parallel channel
• ZEC must hold $344 support to avoid further declines toward $300 or $260

Zcash has gained 20% in recent trading sessions as the privacy-focused cryptocurrency attempts to recover from a steep decline. The ZEC price is now testing the $375 level after bouncing from lower support zones.

The cryptocurrency led the crypto market at the start of November. However, the trend reversed in the past ten days. ZEC fell under a diagonal resistance line and lost more than 55% of its value during this period.

The price broke down from the $375 horizontal support area at the start of December. This level had held for more than a month. Traders expected the breakdown to trigger further selling pressure.

Instead, the price reversed direction. ZEC is now attempting to reclaim the $375 area. If successful, the breakdown will be invalidated.

Failed breakdowns often trigger upward price movements. Technical analysts note that when a support level breaks but quickly recovers, it can lead to sharp rallies. This pattern is visible on the current ZEC charts.

Technical Indicators Show Potential Breakout

The Relative Strength Index broke out from a diagonal resistance line. The Moving Average Convergence Divergence indicator is also showing improvement. Neither indicator has entered bullish territory yet.

However, RSI and MACD breakouts typically happen before price breakouts. Based on these technical signals, analysts project a potential 30% increase to $475 in the near term.

The current bounce occurred at the 0.618 Fibonacci retracement support level. This level often provides temporary support even during downtrends. Assets frequently bounce at this Fibonacci level before resuming their previous trends.

The Chaikin Money Flow indicator shows persistent outflows from ZEC. Capital continues leaving the cryptocurrency. The CMF remains in negative territory. This pattern suggests declining investor confidence.

Long-Term Structure Remains Bearish

The short-term charts display bullish signals. However, the long-term picture tells a different story. ZEC broke down from its long-term ascending parallel channel. This breakdown ended the bullish structure that had been in place.

Even if ZEC reaches $475, the long-term trend would not turn bullish. The current movement appears to be a temporary recovery within a larger downtrend. Another downward move could eventually take prices to new lows.

ZEC is trading at $363 at the time of writing. The price sits just above the $344 support level. Holding this support is essential for any near-term recovery attempt. If bearish conditions continue, ZEC could fall below $344 and slide to $300 or $260.

The key level to watch remains $375. A successful reclaim could trigger a squeeze higher into the $475 range. Failure to hold above this level would resume the bearish trend. The next move is likely to be sharp in either direction.

To reclaim November’s peak near $750, ZEC would need to rally 101% from current levels. This would require flipping $442 into support and climbing toward $520. Such a move remains challenging given the current market conditions and technical setup.

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