Zcash (ZEC) has shown significant recovery in recent days, with a 10.29% increase in the past 24 hours, pushing its price to over $425—up nearly 41.5% from its recent low of around $300. This recovery has sparked speculation that ZEC may reach the psychological resistance of $500 before the end of 2025.
Key Takeaways:
- Zcash is eyeing $500, supported by bullish reversal signals and whale accumulation.
- Risks of a pullback remain, with the overbought RSI hinting at a possible decline toward $260–$280.
Zcash’s Double-Bottom Pattern Signals Potential Rally to $500
Trader Goomba has identified Zcash’s recent price action as a potential double-bottom structure, a bullish reversal pattern. The lows around the $300–$310 range form the two troughs of the pattern, followed by a breakout above the $380 level, which marks the neckline.
According to Goomba, this double-bottom pattern suggests that ZEC’s next significant target could be in the $480–$500 range, coinciding with a previous supply zone. The pattern remains valid as long as ZEC stays above the neckline at $380.
Whale Accumulation Fuels Optimism
In the midst of this recovery, data from trader Ardi reveals that while smaller retail traders ($0–$1,000) and mid-sized investors ($1,000–$100,000) reduced their net exposure by more than $30 million during the recent rally, larger whale accounts ($100,000–$10 million) added over $100 million in the same period. This suggests a divergence in behavior, with larger investors accumulating ZEC while smaller participants have been selling into the rally.
This whale accumulation could be a strong indicator that ZEC’s price may continue its upward momentum, pushing towards the $500 level in the coming days.
Bear Flag Risks Could Derail ZEC’s Rally
Despite the bullish signals, Zcash’s recent price action is unfolding within a bear flag pattern—a weakening relief channel that formed after a steep sell-off in November. Historically, bear flags have resolved to the downside, and ZEC’s struggle to maintain its position above the flag’s upper trendline suggests that sellers could be regaining control.
Additionally, ZEC’s price has faced difficulty breaking above the 200-day exponential moving average (EMA), further reinforcing the potential for a bearish continuation. Moreover, the relative strength index (RSI) has moved into the overbought territory above 70, which typically signals a weakening of upward momentum.
Possible Pullback to $260–$280
The combination of these signals—bear flag formation, failure to break above the 200-day EMA, and the overbought RSI—raises the risk of a pullback. A breakdown from the bear flag could see ZEC retracing toward the $260–$280 range, representing a potential 35% decline from current price levels.
Conclusion:
While ZEC’s recent recovery and whale accumulation suggest the potential for a continued rally, risks remain. The formation of a bear flag, along with an overbought RSI, implies that a pullback could occur, potentially revisiting the $260–$280 range before any further gains. Investors should monitor these technical indicators closely as Zcash aims for the $500 mark, balancing optimism with caution.
