Zcash Breaks Through $40 Resistance, Setting the Stage for Potential Bullish Surge
Zcash (ZEC), the privacy-focused cryptocurrency, has recently surged past a key resistance level, signaling the potential for further price gains.
Since February, ZEC has been trading within a narrow range, with resistance above $40 and support consistently found near $25. This range-bound price action had kept buyers and sellers in a standoff for several months, with little movement beyond the established limits.
However, on Sunday, buyers were able to break through the long-standing supply zone between $40 and $43, pushing the price to a high of $45.80 on the HTX exchange — a level not seen since January 26, according to data from TradingView.
This breakout from the range is seen as a bullish signal, often referred to as a “spring uncoiling.” When an asset has been consolidating for a period of time, the release of pent-up demand can lead to a sharp upward price move.
According to technical analysis, the next price target for ZEC can be estimated by adding the range width — the difference between the upper and lower boundaries of the previous range — to the breakout point. In ZEC’s case, this suggests a potential rally toward the $60 level.
Breakouts through established resistance levels, like the one seen with ZEC, often attract traders looking to capitalize on further price moves. These traders aim to enter positions as the price pushes beyond significant levels of support or resistance, betting on a continuation of the trend.
A similar breakout recently occurred with ZEC’s peer, Monero (XMR), which moved beyond a more extensive range and experienced a bullish “golden cross” that propelled it to highs above $300. However, it’s important to note that chart patterns can sometimes fail to materialize as expected.
