Despite facing a recent weekly correction of 15%, the impressive Zcash rally maintains its technical viability thanks to solid continuation patterns observed on the daily charts. According to the market analysis presented by Ananda Banerjee, the current structure of the Zcash price suggests a temporary pause in the trend rather than a definitive end, keeping alive the hopes of investors seeking new annual highs. This asset has been one of the strongest movers in the market, recording a jump exceeding 1,000% in three months, although the last seven days have raised reasonable doubts.
The asset is currently trading inside an ascending triangle, a technical pattern that generally favors buyers by showing higher lows against a fixed upper resistance. Specifically, the horizontal ceiling sits near 738 dollars, a level that has blocked every attempt at significant advance since early November. On the other hand, between October 30 and November 24, a hidden bullish divergence was detected in the Relative Strength Index (RSI), which historically has preceded significant jumps in the token’s valuation. This phenomenon occurs when price prints a higher low while the oscillator prints a lower low, indicating that momentum has not been exhausted.
Is this correction a healthy pause before new all-time highs?
On the other hand, buying pressure is visibly rebuilding among retail traders, as indicated by the recent behavior of the Money Flow Index (MFI). This key indicator has marked higher highs while the price corrected, signaling underlying strength in the dips and suggesting that buying interest remains valid. Thus, if the MFI manages to surpass the technical level of 62.09, it would confirm that buyers are returning with force to the market to drive the next leg of the movement upward in a sustained manner.
The immediate future of the asset depends on its ability to overcome critical resistance levels that will define the short-term trend in the cryptocurrencies sector. First, it must decisively clear the 606 dollar zone, whose breakout would open the direct path toward the intermediate level of 684 dollars. However, the real litmus test lies at 743 dollars; a daily close above this line would confirm the triangle breakout and signal that the broader bullish trend is ready to resume with renewed vigor.
Although the recent landscape may seem weak following the double-digit drop, the overall technical structure continues to show clear signs of strength and resilience in the face of volatility. Therefore, as long as the vital ascending support of 469 dollars is respected, this corrective move looks more like a temporary detour than a total collapse of the trend. Otherwise, losing this support could neutralize the bullish setup, driving the price toward 367 dollars as the next major defense. Ultimately, traders are closely watching these key levels to confirm if the parabolic rise will continue towards the year-end.
