Analyzing Zcash’s 12% daily rally – Can ZEC retest $300 next?
Key Takeaways
What’s driving Zcash’s rebound?
ZEC rose 12% after Open Curiosity hit $237 million, signaling renewed leverage exercise and robust retail shopping for strain.
How excessive can it go?
Sustained demand above $250 may push ZEC previous $300, with momentum constructing towards its $391 all-time excessive.
Zcash [ZEC] rebounded sharply over the previous 24 hours, gaining 12% from its latest dip at press time, and reignited investor consideration.
The each day chart confirmed that the broader development remained bullish, with $298 as the subsequent key resistance goal.
In truth, the Stochastic RSI approached the oversold zone close to 30, hinting that the newest rebound may mark the tip of the short-term correction.
That left merchants watching whether or not ZEC’s bullish spark may evolve right into a sustained rally.
Supply: TradingView
Leverage piles up as Open Curiosity hits $237M
Based on knowledge from Coinalyze, ZEC’s Open Curiosity (OI) climbed by 10% previously day, reaching $237 million.
The uptick mirrored a surge in leveraged positions and speculative inflows, a well-known signal of merchants dashing to capitalize on short-term momentum.
From the earlier observations, such spikes are likely to precede risky phases as markets modify to overextended leverage, making the subsequent few periods crucial for ZEC’s path.
Supply: Coinalyze
On the similar time, ZEC retail merchants have been significantly lively, driving liquidity and fueling optimism throughout exchanges.
Accumulation clusters shaped round present value ranges, suggesting that smaller buyers had been fueling liquidity. That conduct mirrored earlier altcoin rallies, the place early retail inflows usually preceded bigger institutional entries.
If ZEC sustains its present accumulation, the altcoin may appeal to institutional consideration as soon as once more.
Supply: CryptoQuant
Spot power vs. speculative fragility
Whereas the momentum regarded promising, the sustainability of ZEC’s transfer hinges on greater than short-term enthusiasm.
To your understanding, leverage-driven rallies can shortly lose steam in the event that they lack follow-through from spot market consumers or long-term holders.
Information from CryptoQuant confirmed each Spot Taker CVD and Futures Taker CVD in Taker Purchase Dominant territory, confirming lively demand.
But, sustained upside required deeper participation from whales and establishments.
Supply: CryptoQuant
On prime of that, sustaining assist across the breakout zone remained crucial. A powerful protection there may maintain momentum intact towards $300.
If OI and spot demand proceed rising collectively, ZEC may retest $300 and probably purpose for its subsequent psychological mark close to $391, its all-time excessive.
