Zcash (ZEC) is trading just below a crucial technical resistance level after reaching $308. While the token’s price has decreased slightly over the last 24 hours, it remains up by 460% over the past month according to CoinGecko data. It recorded a trading range of $237 to $308 in the last 24 hours, indicating high volatility post-surge.

Wedge Pattern Approaches Resistance

Current market analysis indicates ZEC is forming an ascending wedge. This pattern often occurs during bullish rallies and signifies a potential slow down in momentum. The entire process unfolds just below the resistance zone between $280 and $313, as denoted by Murrey Math levels, commonly referenced by traders during periods of overextension.

A slight increase in trading volume could lead the token to retest this resistance, while a lack of momentum might push the price towards lower support levels around $250 and $220.

ZEC Chart

Source: TradingView

The Relative Strength Index (RSI) is currently inching close to the overbought threshold at 69, suggesting that market momentum is stretched. This high level typically leads to sideways trading as traders await new direction. A brief pullback is also common when the RSI hovers around these levels.

Multi-Year Breakout Meets Initial Target

ZEC recently achieved a significant breakout, ending a prolonged downtrend. Following the breakout, the token soared to $308. Analyst Javon Marks noted that this point coincided with a critical target level. Marks stated,

“Another >1,000% callout in the books.”

Looking ahead, a second target may emerge near $596.65, although this remains significantly beyond the current price levels. Moreover, this surge followed a period of low resistance and an influx of buying volume, with no substantial correction present thus far.

Futures Interest and Mixed Market Sentiment

Open interest in ZEC futures has spiked significantly, now at $306.3 million, up from less than $50 million in the previous month. This dramatic rise is reflective of growing speculative activity, which can often correlate with increased volatility.

The market sentiment appears divided, with analyst Henry commenting:

“ZEC looks cooked. $311 wick was the exit liquidity.”

He warned that failing to maintain above $300 might lead to a decline towards the mid-$240 range, suggesting a potential head and shoulders pattern. Additionally, he emphasized that bulls must act swiftly to reverse the prevailing momentum.

Zcash founder Zooko responded to recent speculation about the token’s price dynamics, stating,

“I don’t know why the Zcash price has been skyrocketing. And I don’t know if it is going to go back down.”

He dismissed terminology suggesting organized market manipulation, labeling such claims as “just more cynical propaganda.”