ZEC Technical Analysis – Third TD Sequential Signal Warns of Exhaustion

Zcash (ZEC) is experiencing mounting pressure to sell after the TD Sequential indicator gave a third consecutive sell signal. The alert suggests that 2025 has been one of the best cryptocurrency rallies and traders exhibit signs of trend fatigue.

Technical Indicator Indicates Market Exhaustion

The TD Sequential, a highly respected technical indicator created by Tom DeMark, flashed an additional bearish signal for Zcash. This counter-trend tool detects when price movements are exhausted and likely to reverse. According to market analyst Ali Charts, this is the third time the indicator has warned of a potential downturn in recent weeks. In the past, when TD Sequential displayed these patterns, prices decreased by more than 30% in the following weeks.

After peaking to $744 in early November 2025, its highest peak since February 2018, the cryptocurrency has already gained some 30% from these highs. The token is moving hands on the $500 – $680 scale, with immediate assistance on the $500 psychologically essential scale. Although the Relative Strength Index (RSI) remains high, above 80, indicating strong buying pressure, the signal is becoming progressively stretched. The Moving Average Convergence Divergence (MACD) is beginning to show early signs of weakening momentum.

Privacy Coin Surge and Market Dynamics

Zcash’s extraordinary performance requires examining the broader narrative driving privacy coins in 2025. ZEC has surged approximately 1,180% over the past three months, surpassing other privacy-focused cryptocurrencies. Monero (XMR) gained only 25%, while Dash (DASH) gained 405% in the same period.

This dramatic decrease is due to increased privacy concerns as governments adopt stricter surveillance measures and financial transaction monitoring. Zcash’s unique technical architecture utilizes zero-knowledge proofs (zk-SNARKs) and the Halo 2 proof system. This allows users to initiate fully shielded transactions in which the sender, receiver, and transaction amounts remain encrypted.

Besides fundamentals, the price movements of Zcash have been increased by the derivatives markets. ZEC futures have recently achieved a record of $1.13 billion with the long-to-size ratio gaining to 1.06. The accumulation of the leveraged positions leads to liquidation at a sudden price increase. According to various analyses, short positions have had a particularly poor season, including one of the largest short positions, which had an unrealized loss of $18.45 million.

What Traders Should Watch

The current situation is a critical decision for traders and investors holding Zcash positions. The TD Sequential track record of short-term reversal is not something that can be ignored particularly the use of three sell signals. In the past crypto market cycles, such setups have been in the past 20-40% reductions.

The short-term traders can adopt risk management strategies such as tighter stop-losses in the $480-500 support area. Other observers are optimistic in the long-term standing of ZEC, and even its prices reach as high as $850 and even speculators are predicting at 1,000. These situations are strongly dependent on the extent to which current support levels are sustained, as well as the overall cryptocurrency market remaining in a positive mood.

The privacy coin has remained the subject of attention as a potential source of emergence in surveillance issues. Though, regulatory risks should not be overlooked as numerous big exchanges have already delisted privacy coins due to the pressure of state authorities and it may make them less liquid and more inaccessible.

Conclusion

Zcash’s remarkable 2025 rallies have garnered the attention of the market, however TD Sequential’s continued sell signals indicate that traders should be more cautious. While the basic story of the privacy coin is intact and the long-term outlook is appealing, technical signals are displaying clear warnings of near-term price exhaustion. If ZEC can support above critical support zones and the derivatives markets begin to calm down, it will indicate whether the rally will continue or require some rest and consolidation before going for new highs.