Zcash worth is extending its explosive rally, climbing 14% immediately and pushing month-to-month features previous 200%. The privateness token (ZEC) has surged greater than 1,130% prior to now three months, one of many sharpest recoveries out there.
Whereas indicators nonetheless flash bullish momentum, leverage-heavy buying and selling may make the street to larger targets — together with $1,567 — removed from risk-free.
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Hidden Bullish Divergence Retains Zcash Rally Intact?
Between October 3 and October 30, ZEC’s worth shaped a better low, whereas the Relative Energy Index (RSI) — a software that tracks shopping for and promoting energy — created a decrease low.
This is named a hidden bullish divergence, which regularly indicators that an ongoing uptrend is more likely to proceed.
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Zcash’s RSI stays above 70, exhibiting sturdy purchaser management regardless of quick phases of profit-taking. The sample suggests merchants are re-entering reasonably than exiting, preserving the pattern intact. But, a rising RSI quantity may finally result in a pullback-like situation for Zcash.
Backing this total bullishness, the Chaikin Cash Stream (CMF) — which measures large cash coming into or leaving the market — stays optimistic.
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ZEC’s CMF hasn’t dipped under zero for weeks and at present sits round 0.05, exhibiting regular inflows. If it climbs above 0.14 and pushes towards 0.24, it may set off one other wave of shopping for, doubtlessly driving larger features within the close to time period.
It’s value noting that whereas giant cash flows exited ZEC in the direction of the top of October, it by no means truly dropped underneath zero.
And the metric has already curled up on the primary day of November, hinting at rising whale conviction.
Lengthy Leverage Builds Confidence — and Danger
The bullish setup has attracted leveraged merchants to report ranges. In line with Bybit’s liquidation map, complete lengthy leverage in ZEC/USDT pairs is about $32.45 million, whereas quick leverage sits at $1.04 million — practically 30 occasions decrease.
The current 24-hour rally could have already liquidated a number of shorts.
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This additionally means most merchants are betting on continued upside, nevertheless it additionally creates a fragile stability. If the Zcash worth falls even barely, overleveraged lengthy positions may very well be liquidated quickly, forcing extra promoting strain.
That makes $342 and $312 an important short-term assist ranges, which we are going to see later. A drop under $312 may begin a cascade of liquidations.
ZEC Worth Prediction: Can the Rally Breach $1,500?
The Zcash worth continues to commerce inside a flag-and-pole breakout sample, as predicted earlier. It’s a construction that always precedes giant upward extensions.
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The breakout above $438 confirmed the continuation of this transfer, and the following Fibonacci targets sit at $594, $847, and $1,256.
The complete projection of the flag’s pole factors towards a long-term goal of $1,567 — or roughly a 250% upside from present ranges close to $437.
Nonetheless, Zcash’s sharp rise additionally means volatility will stay excessive. The mix of a bullish construction, sturdy cash inflows, and extreme leverage makes this run each promising and dangerous.
For now, the uptrend holds — however merchants should watch $312 carefully, as shedding that degree may shortly flip the narrative. Breaching this degree would liquidate all current lengthy positions, as per the liquidation map shared earlier.
Nonetheless, so long as the ZEC worth stays above $342 (the 0.618 fib degree, each transfer down would appear to be a wholesome pullback.
If ZEC loses $245, the rally would weaken. And a break under $185 would trigger all the bullish construction to break down.