Zcash has staged a sharp recovery, pushing its price back above the $500 mark after a decisive breakout. The move signals renewed interest following weeks of compression.
Despite the surge, ZEC remains well below the upside target implied by its technical pattern, leaving further gains dependent on broader market alignment.
Zcash Is Following The King
ZEC’s correlation with Bitcoin has climbed to a two-month high, indicating tighter price linkage between the two assets. This rising correlation suggests Zcash is increasingly reacting to Bitcoin’s directional cues rather than independent demand dynamics.
The relationship presents a double-edged risk. A sustained Bitcoin rally would likely support further upside for ZEC. However, Bitcoin’s recent unpredictability raises downside exposure. Any sharp BTC pullback could quickly translate into selling pressure across correlated altcoins, including Zcash.
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Investor sentiment around Zcash remains fragile. Market confidence is currently at a multi-month low, reflecting hesitation despite the recent breakout. Weak sentiment often limits follow-through rallies, as participants remain quick to secure profits rather than hold positions.
This lack of improvement is concerning because investor confidence directly influences demand. Positive sentiment typically attracts incremental buyers and supports higher valuations. Without a visible shift in perception, ZEC’s upside potential may struggle to fully materialize despite favorable technical signals.
ZEC Price Is Aiming At Further Rally
ZEC had been consolidating within an ascending triangle before breaking out over the weekend. The breakout confirms bullish intent from a technical perspective. At the time of writing, Zcash trades near $524, holding above former resistance levels.
The ascending triangle pattern targets a move toward $672. That level represents a 49% gain from the breakout point and roughly 27% upside from current prices. Reclaiming $600 as support would strengthen the bullish structure and increase confidence in continued upside.
However, mixed macro signals temper optimism. If broader market conditions deteriorate, ZEC could lose momentum. A drop below $500 would expose the price to a deeper pullback toward $442. Such a move would invalidate the bullish thesis and negate the breakout signal.
The post Zcash Price Eyes $672 Target After Clearing $500 Resistance appeared first on BeInCrypto.
