Grayscale Files for First US Spot Zcash ETF - Will ZEC Hit $1,000? ChatGPT Thinks So
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Key Takeaways
Zcash (ZEC) fell by 30% after its all-time high price of $744.
ZEC trades inside a corrective pattern after completing an A-B-C increase.
Has Zcash finally reached its cycle top, or will it surge again this year?
Zcash (ZEC) has seen a sharp reversal after an impressive parabolic rally that pushed it to its highest level in seven years.
After peaking near $744, the price has retraced significantly, suggesting the bullish momentum may be cooling off.
Despite this decline, technical indicators still suggest that the long-term trend could remain intact.
Let’s examine the charts and figure out what lies ahead.
ZEC’s Technical Analysis
The weekly time frame price action shows that ZEC has increased at a parabolic rate since the start of September, when it broke out from a long-term diagonal resistance trend line.
The increase took the price to a high of $744, reaching the highest level since 2018 and breaking out from the critical horizontal resistance at $400.
This week, ZEC finally hit a roadblock, getting rejected from the $750 horizontal resistance area.
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Even though the Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) are overbought, there is no clear weakness in the form of a divergence.
Therefore, the ongoing increase might be a temporary correction in the long-term bullish ZEC trend.
Why is Zcash Going Down?
The long-term wave count shows that the price of ZEC has completed an A-B-C correction (red) since July 2024.
Wave B created a symmetrical triangle, confirming that this is the correct structure.
The wave C extension has been extreme, reaching 4.61 times the length of wave A.
Such an extreme extension is rare and typically marks the peak of the upward movement.
If this scenario unfolds, it means the Zcash price has already reached its peak and is now in a downward trend. In the short term, the price of ZEC trades inside a corrective
parallel channel, which could mark the end of the movement by creating a diagonal pattern.
If the price of Zcash breaks down, it will confirm that wave C is over, and with it so is the parabolic upward movement.
So, the long-term ZEC price prediction suggests the coin may have reached its high for the foreseeable future.
Zcash’s Rally May Be Over
While ZEC’s recent price decrease raises short-term caution, the broader outlook still leaves room for a potential rebound if $400 holds as support.
No bearish divergences suggest a correction is taking place instead of a reversal.
A confirmed breakdown from the current channel would decisively mark the end of ZEC’s parabolic phase, making a sustained downturn the more likely scenario.
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.
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.
