The Zcash (ZEC) chart shows warning signs after an impressive rally that took its price from roughly $38 to over $290 during October 2025, even briefly touching $374. This strong move has triggered technical indicators that often precede corrections, raising concern among risk teams and large funds, since simultaneous profit-taking could drain liquidity and trigger forced liquidations of leveraged positions.
Multiple technical indicators suggest ZEC is overbought. The relative strength index remains above 80, a level Invezz classifies as “overbought”. Gate.io notes that short-term moving averages have stopped rising, while the Bollinger Bands have widened significantly, a configuration that often precedes erratic moves. The Chaikin money flow has dropped sharply from 0.45 to 0.04, which according to Bitget reflects selling by “whales” taking advantage of the price strength.
The chart structure shows recognizable bearish patterns. Open interest in futures fell 22% in just three sessions, indicating a rapid exit of speculative positions. The price has formed two distinct peaks near $300, a formation technical analysts call a “double top”. Some also describe the recent small green candles as a “dead cat bounce”, suggesting a weak recovery before another drop. Volume decreases each time the price tries to rise, a sign that buyers lack real strength.
Offsetting factors and key levels
Not everything points to a bearish scenario. Coins are leaving exchanges, with approximately 27.5% of all ZEC (about 4.5 million coins) stored in secure pools, suggesting accumulation by long-term investors. Vehicles like the Grayscale Zcash Trust offer institutions a regulated way to maintain exposure, which could support future demand.
The key technical levels to watch in case of a continued downside are: first support between $268-$270, followed by $247-$245, and then $236.74 and the 99-day EMA near $216. A daily close below $187 would break the bullish structure and open the door to levels of $150, $120 or even below $100, according to the analysts consulted.
The upcoming daily closes will determine whether October marked an explosive top or if it was the first step of a more prolonged uptrend. The loss of the $268-$270 zone would significantly increase the odds of a deeper pullback.
