Zcash Shows Early Signs of a Renewed Rally as Selling Pressure Collapses

Zcash (ZEC) slipped about 2.2% today, but the short-term dip masks a more important technical development. After an explosive three-month surge of more than 1,278%, the price has cooled in a controlled way without breaking its broader bullish structure. Meanwhile, selling pressure has dropped sharply—down nearly 85% from recent highs—hinting that ZEC may be preparing for another leg upward.

Over the past week, ZEC formed a falling flag pattern, a common consolidation structure that appears during strong uptrends. The price has now pushed above the flag’s upper trendline, signaling a potential breakout. However, confirmation hinges on a daily close above the key $537 level, where the trendline aligns with horizontal resistance. A clean move above this zone would strengthen the probability of a continuation rally.

Zcash’s broader trend still appears intact because the latest pullback created a higher low compared to the previous major low. This structure is reinforced by a hidden bullish divergence on the Relative Strength Index (RSI). Between October 22 and November 7, price made a higher low while RSI dipped lower—an indication that bullish momentum remains embedded beneath the surface. Hidden bullish divergence typically shows up in strong trends when momentum briefly cools before resuming.

On the volume side, the change is even more dramatic. Exchange spot netflows shrank from a massive $38.91 million on November 12 to just $5.81 million today. The sharp decline suggests sellers are backing off. On-Balance Volume (OBV) has also broken above its descending trendline, signaling a volume-backed shift, though it still needs to push above 8.16 million for firmer confirmation.

For now, ZEC trades near $502, positioned between immediate resistance and support. A close above $537–$538 would open upside targets at $612, $688, and potentially $749 if momentum accelerates. Support sits at $488, with a deeper floor at $368. Losing $488 would weaken the breakout case, while a drop below $368 would invalidate the bullish setup.

This combination of easing selling pressure, supportive volume trends, and resilient structure suggests Zcash may be preparing for another breakout if buyers step in at critical levels.