Zcash Breaks $40 Barrier, Signals Potential for Bullish Continuation
Zcash (ZEC) has broken through a significant resistance zone, sending bullish signals for its next price move, following months of range-bound trading.
The privacy-focused cryptocurrency had been caught in a tight price range since February, with the upper boundary held by resistance around the $40 mark and support near $25. Sellers had dominated above $40, while buyers repeatedly defended the lower levels near $25, creating a prolonged period of consolidation.
On Sunday, however, ZEC bulls overcame this resistance, pushing the price to a high of $45.80 on the HTX exchange, marking a breakout above the $40-$43 zone. This marks the highest price for ZEC since January 26, as per TradingView data.
Breakouts from long-held resistance levels like this often trigger a surge in buying activity, as traders expect continued upward momentum. A typical technical analysis strategy, the measured move method, suggests that ZEC could see a rally toward $60 if the breakout holds, based on the width of the previous range.
Such breakouts are often followed by strong price action, as seen in other cryptocurrencies like Monero (XMR), which broke out of its own range and surged to new highs. While these patterns generally indicate bullish trends, investors should remain mindful of market volatility and the inherent risks associated with trading on technical patterns.
