Zcash (ZEC) has been navigating a period of consolidation after a sharp pullback from recent highs.

The cryptocurrency is currently trading around $244, reflecting a cautious market environment following a 35% decline over the past month.

On the charts, ZEC is trading within a descending triangle on the 4-hour timeframe, and it recently broke a key trendline below, signalling some bearish momentum in the near term.

Despite this, there are signs that the market is finding its footing.

The support between $234 and $230 has held strong, providing buyers with a clear entry point.

On the other hand, immediate resistance sits at $245, and surpassing this level on strong volume could open the door for a push toward $260 and beyond.

The short-term technical picture is mixed.

While the descending triangle pattern indicates a potential continuation of the pullback, there are bullish elements forming in the background.

ZEC has seen accumulation from high-profile investors, which lends some fundamental support to the market.

Additionally, extreme fear in market sentiment suggests the cryptocurrency may be near a local bottom, although caution remains essential.

Volume trends provide further context.

Trading activity has increased as ZEC tests its resistance levels, indicating growing market participation.

A breakout above the $245–$246 zone, followed by a push past $260, could validate a reversal in momentum.

Conversely, analysts note that failure to overcome these barriers may see prices retest support levels around $230.

Traders will need to monitor price action closely, with stops below $229 for long positions and above $251 for shorts as part of disciplined risk management.

ZEC’s performance is also closely tied to Bitcoin. If Bitcoin price remains below the $70,000 threshold, breaking the descending resistance could prove difficult.

The correlation between the two assets means that any significant move in BTC may directly influence ZEC’s ability to rally.

For now, the market appears poised for a decision point, where either a breakout or a renewed pullback could set the tone for the coming weeks.

Overall, Zcash (ZEC) is at a critical juncture. The cryptocurrency is consolidating after recent volatility, but market participants are actively weighing short-term risks against longer-term opportunities.

The strong support levels, accumulation by influential players, and potential breakout zones suggest that the coming days could define whether ZEC resumes its upward trend or faces extended consolidation.

With $260 emerging as a key breakout target, traders should closely watch how ZEC reacts to its immediate resistance since this will likely determine the next phase.

Traders could choose to use a contrarian approach that would focus on buying near the green support zone, aiming for targets at $245 and $263 in case of a rebound from current lows and a move toward key resistance.

Alternatively, those following the downward trend may consider short positions, targeting $220 and potentially $207 if bearish momentum continues.

However, both approaches require careful risk management owing to the extremely volatile nature of cryptocurrencies.

The post ZEC in consolidation after sharp pullback, eyes $260 breakout potential appeared first on Invezz

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