Zcash (ZEC) continued to stabilize after a broader decline from highs above $700, gradually compressing towards a critical support region near $200. Initially, persistent selling pressure pushed the price steadily lower in December and January, reinforcing the prevailing bearish pattern.
However, the price action changed once ZEC approached the $200 demand zone, where buyers repeatedly absorbed selling pressure and avoided deeper losses.
This defense triggered a relief bounce of around 13%, pushing the crypto towards the $250 resistance corridor.
Source: TradingView
At the same time, momentum indicators were cautious. The RSI near 43 hinted at neutral conditions, suggesting that buyers have rebuilt their strength without taking control. At the same time, the MACD showed the first signs of stabilization after prolonged bearish momentum.
Zcash price recently tested $251, where horizontal resistance aligns with the short-term moving averages. As a result, at the time of writing, the market was squeezed between the $200 support and $250 resistance.
Sustained defense of $200 is a sign of accumulation, while a decisive breakout above $250 could trigger the next phase of recovery.
ZEC tests $240 resistance as Fibonacci levels frame rebound
After a broader stabilization near the demand base, the shorter time frame revealed the structural course of the recovery. Over a 4-hour time frame, Zcash defended a tighter support cluster between $232 and the Fibonacci baseline near $215.
This area served as an immediate cushion within the broader accumulation region highlighted previously.
From this base, the price rebounded towards $234 approaching the first resistance barrier. The 23.6% Fibonacci retracement near $268 now represents the next upside checkpoint if momentum continues to build.
Source: TradingView
At the same time, momentum indicators revealed a gradual improvement. The RSI climbed towards 55, signaling an increase in buying pressure after previous weakness. At the same time, the MACD histogram continued to narrow as the signal lines approached a bullish crossover.
Additionally, closing the SEC investigation into Zcash without enforcement action removed all significant regulatory hurdles. This is currently boosting market sentiment.
Currently, the price is testing the $240 threshold – a level that could unlock more upside. A sustained close above this level could accelerate the relief rally towards $250 and possibly Fibonacci resistance at $268.
However, a loss of $232 would reopen downside risk towards the $215 support level.
Final summary
- Zcash’s (ZEC) defense of the $200 macro demand zone halted the broader downtrend, allowing prices to stabilize.
- Zcash’s rebound now depends on reclaiming $240 on a shorter time frame, where a breakout could open the way towards $250 to $268.
