ZEC Technical Outlook Shows Weak High as Buyers Lose Control
Zcash has recorded an exceptional multi-week rally, but new technical signals suggest that bullish strength may be cooling. The latest 4-hour chart reveals a sequence of change-of-character (CHOCH) patterns emerging near a major supply region. Analysts say that despite strong long-term momentum, price is now testing a critical zone that may dictate whether ZEC continues upward or enters a deeper retracement.
Zcash Faces Key Resistance Zone
ZEC/USDT is currently trading around the 619 level after reaching a local peak near the weak high marked on the chart. Price action shows multiple CHOCH structures across recent sessions, underscoring hesitation from buyers.
A large supply block between 680 and 760 has repeatedly capped moves, while the lower timeframes show a pattern of failed attempts to break convincingly above this range.
“We are noticing clear exhaustion signals as ZEC approaches the 700 region. This is a major decision point where liquidity thins out and profit-taking accelerates,” said BitXJournal market analyst who monitors large-cap altcoins.
The chart highlights previous breaks of structure (BOS) during the rally from early October, each supporting continuation. But the latest swing lacks the same strength.
The repeated CHOCH formations near resistance are an early warning that buyers may be losing short-term control.
Strong Demand Zones Still Intact
Despite the slowdown, ZEC maintains several well-defined demand zones:
- 485–520
- 405–435
- 280–345 (major demand)
- 215–260 (deep structural demand)
These zones reflect strong accumulation footprints during the October–November rally.
Analysts note that as long as Zcash holds above the 405 structure, broader bullish sentiment remains intact.
“The market built a healthy staircase on the way up. Until those key demand layers are broken, higher-timeframe bias stays constructive,” BitXJournal technical strategist observed.
Zcash now trades between a heavy supply block overhead and solid demand layers below. A breakout above the weak high could open the door to another impulsive rally, while rejection may trigger a pullback toward 485 or even 405.
Market participants will be watching liquidity behavior closely as ZEC decides its next major direction.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.