Zcash (ZEC) has surged to its highest level since 2025, but the rally is now approaching a major technical barrier. While some analysts point to the first \u201cconstructive signs\u201d in months, others warn of potential signs of exhaustion.<\/p>\n
Zcash has been among the crypto market leaders<\/a> amid the recent volatility, rallying more than 21% over the past week and 110% over the past 30 days. Throughout May, the cryptocurrency has jumped from the $350 barrier to reclaim the $670 area, reaching a six-month high of $690 on Wednesday.<\/p>\n Amid this performance, market observer Ali Martinez highlighted<\/a> a multi-month horizontal channel that has been forming since October between the $192 and $698 level. After retesting the channel\u2019s bottom in March, ZEC has jumped roughly 250% toward the upper zone of the channel, nearing a retest of the macro resistance.<\/p>\n The analyst affirmed that the next step \u201cis seeing whether buyers step in hard enough to force a breakout\u201d from the crucial resistance zone. Nonetheless, he noted that Zcash may be showing signs of exhaustion as it approaches the \u201csame resistance zone that triggered a major rejection back in November,\u201d between $700 and $730.<\/p>\n According to the post, ZEC\u2019s TD Sequential is currently flashing a sell signal on the weekly chart while momentum indicators \u201care starting to look stretched again,\u201d making it an important setup to watch.<\/p>\n The 250% move from the bottom to the top of the channel was anticipated by a TD Sequential buy signal on the weekly chart, Martinez noted, asserting that the correction could be more significant since the sell signal has appeared in the weekly timeframe.<\/p>\n He suggested that Zcash could see a 25% correction toward the $500 area as the initial target, adding that a 45% drop toward the $380 support may follow if a deeper retracement occurs.<\/p>\n \u201cSo, while both HYPE<\/a> and Zcash remain in strong uptrends, they are also entering zones where risk increases significantly,\u201d he warned.<\/p>\n While the price holds the December highs as support in the weekly timeframe, analyst Rekt Capital pointed<\/a> out that Zcash is \u201cshowing initial Bull Flag tendencies similar to what developed a few weeks prior, with positive pressure building at $528.951.\u201d<\/p>\nZcash Shows \u2018Constructive Signs\u2019<\/h2>\n