ZEC Price Analysis: Will This Breakout End the Bear Market?

Key Takeaways

Zcash (ZEC) broke out from a long-term resistance trend line.
The ZEC price trades inside a short-term descending wedge.
Can ZEC break out and confirm its correction is over?

Zcash (ZEC) shows signs of a potential trend reversal after years of steep decline.

After its 96% crash from the 2021 peak, ZEC finally broke out from a long-term resistance trend line.

The key question now is whether this breakout signals the end of its correction or just another pause before further downside.

ZEC Price Analysis

The weekly time frame shows that ZEC fell by 96% after its all-time high of $372 in May 2021, culminating with an all-time low of $15.78 in July 2024.

Interestingly, this marked the low since the price of ZEC increased, creating a higher low (green icon) and breaking out from a long-term resistance trend line.

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Since the trend line had existed since the all-time high, the downward trend could be over now. Adding to this possibility, the ZEC price confirmed that the decline below $25 was just a deviation.

Currently, the ZEC price trades below the midline of its newfound range between $25 and $100. Despite the previous breakout, the trend leans bearish while ZEC trades below this line.

ZEC Move — ZEC Weekly Chart | Credit: Valdrin Tahiri/TradingView

Momentum indicators are neutral. The Moving Average Convergence/Divergence (MACD) is zero while the Relative Strength Index (RSI) is 50.

So, the weekly time frame technical analysis does not confirm if the long-term ZEC prediction is bullish or bearish.

What’s Next?

While the weekly time frame is uncertain, the daily Zcash price chart shows a bullish structure that could lead to a breakout.

Firstly, the price action shows a descending wedge that has existed since May.

The ZEC price is nearing the end of the wedge, so a breakout is likely soon.

ZEC Breakout — ZEC/USDT Daily Chart | Credit: Valdrin Tahiri/ TradingView

Adding to the bullishness, the RSI and MACD have generated bullish divergences (orange) at the two most recent lows, creating a double bottom pattern.

Once the ZEC price breaks out from its wedge, the token will likely reach the next resistance at $47, close to its long-term range high.

ZEC Breakout Incoming

While the weekly chart remains indecisive, the price analysis suggests an imminent ZEC breakout from the descending wedge.

If confirmed, ZEC could quickly rally toward the $47 resistance zone, regaining its bullish momentum.

However, failure to break out would leave the price vulnerable, keeping the long-term outlook uncertain.

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Disclaimer: The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.

About the Author

Valdrin Tahiri

Valdrin Tahiri is a cryptocurrency analyst and reporter at CCN, specializing in technical analysis with a focus on Elliott Wave theory, on-chain metrics, and fundamental research. He brings over seven years of experience in the crypto space as both a trader and writer.

He discovered cryptocurrencies in 2017 while earning his MSc in Financial Markets at the Barcelona School of Economics, which sparked a deep interest in blockchain and market dynamics. Since then, he’s contributed to top crypto outlets like BeInCrypto and CoinGape.

Valdrin also served as Community Manager of BeInCrypto’s Telegram group for three years, helping grow it into one of the largest crypto communities worldwide. His expertise in market structure and price patterns allows him to break down complex trends into clear, actionable insights.

He’s published thousands of articles covering altcoins, Bitcoin cycles, and macro trends.

[email protected]

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