Zcash (ZEC) Tests Descending Triangle Support After Sharp 24-Hour Sell-Off

Zcash (ZEC) was trading at around $312 on Saturday, January 31, 2026, after it recorded a 7.07% decline in the last 24 hours, according to CoinMarketCap.

Additionally, the altcoin recorded a 14.95% decline in the last week, as the overall altcoin market was experiencing decreased sentiment. The trading volume also recorded an increase of 3.68%, reaching $478.4 million.

Source: CoinMarketCap

ZEC Holds Support as Analyst Marks Key Targets

Crypto analyst Bit Amberly highlighted that ZEC was testing the lower boundary of the descending triangle pattern. He noted that the zone was an important structural support zone for the altcoin and was largely responsible for its recent movements. 

The analyst identified four upside levels for the altcoin as it seeks to rise from its current position. These levels include $370, $450, $560, and $725, which will serve as the next resistance levels for ZEC as it moves higher.

Source: X

Moreover, another analyst, CryptoBull, mentioned that ZEC was consolidating in a symmetrical triangle pattern. He added that the token was still trading above the support trendline, which has held during recent movements. The altcoin was still at risk of falling, as it could break down from the triangle pattern.

Source: X

Also Read: Bitcoin Stabilization Near $84,000 Could Signal Next Major Rally

RSI and MACD Signal Weak Momentum

The Relative Strength Index (RSI) for the daily chart is 35.99. The signal line is located at 39.66. This level indicates that momentum is weakening in the current trend.

The Moving Average Convergence Divergence (MACD) is showing bearish signals as well. The MACD line is at -25.38. The signal line is at -23.21. The histogram is located at -2.17.

Source: TradingView

Volume Rises as Open Interest Declines

CoinGlass data shows that the total volume increased by 2.61%, resulting in $1.34 billion. The Open Interest decreased by 6.83%, resulting in $519.55 million. The ZEC OI Weighted Funding Rate is neutral at 0.0050%.

Source: CoinGlass

Liquidations increased as the volatility increased. The total liquidations are $5.22 million over the last day. $4.94 million of these are long positions. $280.36K are short positions.

Source: CoinGlass

Analysts are anticipating a narrowing of the formations observed in the ZEC charts. Analysts observe these formations across various time frames. The movement of ZEC in relation to the trend line support will be a key factor in determining its next price movement.

Also Read: Zcash (ZEC) Momentum Fades After Rejection at 0.618–0.786 Fibonacci Levels