ZCash (ZEC) has declined 6.68% over the past week despite showing short-term bullish potential. Analysis of the privacy token indicates a possible rebound toward $357, contingent on Bitcoin reclaiming the $70,000 level as a positive catalyst for the wider market.
The privacy token ZCash saw a weekly drawdown of 6.68%. Short-term bullish potential for ZEC existed alongside the possibility that Bitcoin moving above a local $70,000 supply zone could bolster market confidence.
A report highlighted a $52 million capital flight from ZEC in the perpetuals market. The past month also saw large liquidations underscoring frequent price volatility.
Long-term positive developments included growth in shielded supply and transactions. This trend entrenched the privacy narrative for the cryptocurrency.
On the daily chart, the RSI was at a bearish 43 reading while the OBV slumped toward local lows. These indicators suggested traders should remain bearish in their outlook.
Price action, however, presented a different perspective. The token defended the $250-$251 zone after reacting from the long-term $187 support level.
A brief upward move to $320 has since withdrawn. The analysis noted potential for the current move to extend beyond that point.
Zooming into the four-hour structure showed a bullish flip after ZEC reclaimed $251 as support. This level had previously acted as a local supply zone.
The prevalent swing structure on this timeframe remained bearish. Yet, room existed for a deeper upward retracement before any primary bearish continuation.
The 61.8% and 78.6% Fibonacci retracement levels represented a key zone for traders. A rally toward $320 and $357 was presented as a watchpoint.
The ZCash long-term narrative was entrenched, and the defense of the $187 support reinforced the idea of a ZEC comeback. A final summary added that it is unclear how high this rebound can go.
