Zcash Price Eyes $500 Recovery as Key Support Holds Firm

Zcash (ZEC) is showing signs of stabilizing after a two-week pullback, with technical indicators suggesting the privacy-focused cryptocurrency could still rally toward the $500 level if buyers continue defending critical support zones.

At the time of writing, ZEC is trading around $476, rebounding after briefly slipping below its 50-day moving average before quickly reclaiming the level. The cryptocurrency is also finding support near the 100-day moving average at approximately $474, creating a key technical area that could determine its next move. As long as these support levels remain intact, Zcash's medium-term bullish trend remains valid despite the recent correction.

The latest decline has been relatively controlled rather than a sharp sell-off. After surging to nearly $570 earlier this month, ZEC entered a healthy correction as traders locked in profits, forming a pattern of lower highs. However, selling pressure has noticeably weakened near the moving average cluster, indicating that buyers are stepping back into the market.

The next major resistance lies around the 50-day moving average near $495. A decisive breakout above this level could pave the way for a move back above the psychologically important $500 mark. If bullish momentum continues, reclaiming $520 would strengthen the case that the correction has ended and shift attention toward July's highs.

Momentum indicators also hint that bearish pressure is fading. The Relative Strength Index (RSI) has recovered to around 46 after previously falling from overbought territory. Although the RSI remains below the neutral 50 level, it has stopped making fresh lows, suggesting that downside momentum is gradually weakening.

Trading volume has also declined during the correction, signaling that the recent price drop has been driven more by profit-taking than panic selling. Reduced selling activity often creates favorable conditions for a relief rally when buying interest returns.

For the bullish outlook to remain intact, ZEC must continue holding above its 100-day moving average. A breakdown below this support would weaken the recovery scenario and could expose the 200-day moving average near $412 as the next major downside target.