Zcash (ZEC) is currently testing key support levels following a steep decline, with chart signals and trader activity suggesting a possible near-term recovery. Although the token has lost a significant portion of its recent rally—dropping more than a quarter of its value—selling pressure appears to be easing. Recent sessions show a tighter trading range forming, which often hints at accumulation as traders begin to test major support levels.
### Zcash Approaches a Possible Turning Point
Over the past week, ZEC has been among the weakest-performing tokens. Persistent heavy selling drove prices lower day after day. However, a subtle shift has emerged as candlesticks have shortened and trading volume has diminished. These changes often indicate that selling pressure is waning.
A narrowing price range has also formed, creating a zone closely monitored by traders for potential signs of recovery. Currently, ZEC is trading near several key areas that have historically caused strong market reactions. Such price zones typically attract both buyers and sellers who vie for control, and this dynamic usually influences the asset’s short-term direction—especially after significant losses.
### Technical Signs Indicating Exhaustion
Several technical indicators suggest the recent downtrend may be losing momentum. The size of candles during the price slide has decreased, and volume has declined during recent sessions. Both factors often point to sellers growing less aggressive.
Notably, buyers have defended the $330 support level for two consecutive days. This level aligns with previous price interest, making it a key area for traders to watch. Additionally, ZEC dipped below the 0.5 Fibonacci retracement level from its yearly highs and is now approaching the 0.382 level near $302.
The Relative Strength Index (RSI) has been decreasing over the past weeks but currently rests near levels that sometimes precede a trend reversal. Importantly, ZEC made a daily close above $340—a move that bolsters the case for a potential bounce. As of writing, the token is trading around $343.
With these factors in place, the bulls need the asset to break out of the current consolidation range and push further upward to confirm recovery momentum.
### Short-Term Scenarios for the Next 24 Hours
Traders are closely monitoring two possible paths in the short term, centered around key price levels:
– **Bullish Scenario:** If buyers maintain support near $330 and subsequently push the price above $385, ZEC could experience a short-term rally. Increased trading volume during such a move may drive the token toward $400, with a possible test of the $525 to $545 range. This would indicate a breakout from the tight trading range and an early stage of recovery.
– **Bearish Scenario:** Conversely, a drop below $330 to $345 would likely trigger a retest of the $300 support zone—an area that carries significant weight due to past price reactions. Failure to hold this level could see sellers push ZEC down toward $270 or even lower.
Overall, a strong bounce from the $300 zone, accompanied by rising volume, could mark the beginning of a sustained recovery for Zcash. Much depends on how the token behaves around the critical $330 and $300 support levels in the coming sessions.
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*Related Reading: [Zcash Drops Despite Landmark Step Toward First ZEC ETF](#)*
https://bitcoinethereumnews.com/tech/zcash-rebound-in-motion-charts-hint-at-a-possible-shift/
