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ZEC Climbs Close to $400 While Technical Signals Suggest a Potential Pullback

ZEC Climbs Close to $400 While Technical Signals Suggest a Potential Pullback

Bitget-RWA2025/11/02 23:24
By:Bitget-RWA

- Zcash (ZEC) surged near $400, outperforming Bitcoin and Ethereum, but technical indicators signal potential correction due to bearish divergences and weakening momentum. - On-chain data highlights rising retail activity and distribution phase warnings, suggesting short-term profit-taking and waning institutional interest. - ECC’s Q4 2025 privacy upgrades aim to strengthen ZEC’s value proposition, though mixed sentiment persists amid macroeconomic headwinds and Fed rate impacts. - Analysts warn of 10%–12%

Zcash (ZEC) has climbed close to $400, sharply outperforming the wider cryptocurrency sector, though technical signals and blockchain data hint at a possible pullback as momentum slows. The privacy-oriented coin has left behind

and , surging more than 970% over the past year. However, analysts caution that bearish divergences in several indicators could point to a short-term reversal.

ZEC Climbs Close to $400 While Technical Signals Suggest a Potential Pullback image 0

On the daily chart, ZEC has developed a rising wedge pattern—a setup that often signals a bearish turn after a prolonged rally, according to a

. The wedge’s upper limit is now around $450, indicating may approach this resistance before potentially reversing. Still, a declining RSI (now at 74) and shrinking trading volumes suggest buyers are losing steam, as noted by Cointelegraph. On-chain metrics add to the caution: retail investor activity has spiked, a pattern that often coincides with local market tops, according to an . Ki Young Ju, CEO of CryptoQuant, observed that ZEC seems to be in a distribution phase, warning that current participants are mostly retail traders likely entering a profit-taking cycle, FXStreet added.

Bearish divergence has also appeared between ZEC’s price and its Relative Strength Index (RSI). While the price reached new highs in early October, the RSI posted lower highs—a classic indicator of fading momentum, FXStreet pointed out. The Chaikin Money Flow (CMF) also showed weakening inflows even as prices climbed, according to a

. These signals suggest ZEC could see a 10%–12% decline, potentially revisiting support zones near $314 or $284, BeInCrypto warned.

Electric Coin Co. (ECC), the developer behind ZEC, has laid out an ambitious roadmap for Q4 2025, aiming to strengthen privacy features and address technical debt. Planned upgrades include multisig wallet support, temporary addresses for swaps, and better management of shielded supply. These enhancements are designed to reinforce ZEC’s position as a privacy-focused store of value, with shielded supply already increasing alongside the price rally.

Market outlook remains divided. Despite ZEC’s strong uptrend amid overall crypto volatility, an

highlighted ongoing market challenges. Some experts believe the token is still undervalued, citing its 0.33% share of Bitcoin’s market cap, according to a . Yet, recent technical and on-chain signals suggest a short-term correction could be on the horizon. Should ZEC fall below the wedge’s lower boundary, it may target the $260–$270 area, which aligns with the 20-day EMA, Cointelegraph reported.

ZEC’s future direction will depend on institutional uptake and broader economic trends. The Federal Reserve’s latest rate cut has weighed on the crypto market overall, FXStreet noted, but ZEC’s continued strength points to robust retail interest. A decisive move above $400 could revive bullish momentum and set sights on the wedge’s peak near $450, Cointelegraph said. On the other hand, a sustained drop below $314 could break the current uptrend and lead to further declines.

As ECC implements privacy improvements and the market reacts, ZEC’s performance will remain a key indicator of sentiment among alternative cryptocurrencies in an increasingly fragmented digital asset landscape.

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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