Is The Zcash Bull Cycle Over? ZEC Price Forecast

Zcash fell 14% after a seven-year high, with technical signals pointing to a possible correction as support levels attract buyers.

Zcash has been among the top performers this year. Its price surged to over $730 in early November. 

The asset now trades near $575 and is creating questions about whether the rally has peaked or a buying opportunity still exists.

Zcash Price Pulls Back After Strong Rally

ZEC recently experienced a drop of more than 14% in a single day. Just two months ago, it traded around $50. However, the sudden increase caught many investors by surprise. 

From October to early November, ZEC climbed steadily and eventually peaked at a seven-year high.

The decline is similar to how the general market has performed lately. Still, despite losses, some analysts are optimistic and are predicting rises towards $800 or even $1,800 in the next few months. 

As of writing, buyers are now defending the $575 to $580 zone. This area acted as support during prior rallies, but the Relative Strength Index (RSI) now indicates overbought conditions at 78 and is showing more downside risk.

Short-Term Technical Outlook

ZEC currently trades within an ascending parallel channel. The price currently sits near the channel midline and channels often contain corrective moves. In other words, a breakdown could be likely from here.

The MACD and RSI are both showing bearish divergences and are supporting a possible drop.

This being said, if ZEC loses support at $575, it could fall to $540 in the next few days. Traders are watching the $608 mark as a resistance point. Staying below this level may confirm the bearish scenario.

The daily pivot lies near $604 and support levels currently sit at $582.7 or around $540. Resistance seems clustered near $626 and $724 and investors need to observe these levels for the right entry and exit points.

Related Reading: Hayes Claims Zcash Could Overtake XRP After 43% Surge

Intraday and Momentum Insights

On hourly charts, ZEC is showing neutral momentum. The price currently hovers near the 20-hour and 50-hour EMAs and the RSI sits near 48. This indicates that neither bulls nor bears dominate and minor bullish attempts are occurring on the 15-minute charts. 

Through it all, short-term traders are attempting to push higher but clear breakouts have not yet shown up.

Overall, candlestick patterns are showing a phase of consolidation after a strong rally. 

Future Scenarios and Strategies

ZEC may continue correcting before stabilising. Short-term drops could reach $540 if support fails. On the upside, breaking $626 could show fresh buying interest.

Investors with long-term plans can consider scaling their holdings during pullbacks, while short-term traders should focus on intraday EMA lines and pivot levels. 

In all, this combination of overbought conditions, high volatility and historical peak prices makes ZEC a watchlist asset rather than a guaranteed profit play. 

This being said, investors should consider timing entry points and respecting support zones as the most effective approach for making profits off the market.

The post Is The Zcash Bull Cycle Over? ZEC Price Forecast appeared first on Live Bitcoin News.