Zcash worth is extending its explosive rally, climbing 14% at this time and pushing month-to-month features previous 200%. The privateness token (ZEC) has surged greater than 1,130% prior to now three months, one of many sharpest recoveries available in the market.
Whereas indicators nonetheless flash bullish momentum, leverage-heavy buying and selling may make the street to increased targets — together with $1,567 — removed from risk-free.
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Hidden Bullish Divergence Retains Zcash Rally Intact?
Between October 3 and October 30, ZEC’s worth shaped the next low, whereas the Relative Power Index (RSI) — a device that tracks shopping for and promoting power — created a decrease low.
This is called a hidden bullish divergence, which regularly indicators that an ongoing uptrend is prone to proceed.
Hidden Bullish Divergence At Work: Tradingview
Zcash’s RSI stays above 70, exhibiting sturdy purchaser management regardless of brief phases of profit-taking. The sample suggests merchants are re-entering relatively than exiting, preserving the development intact. But, a rising RSI quantity may ultimately result in a pullback-like state of affairs for Zcash.
Backing this general bullishness, the Chaikin Cash Circulate (CMF) — which measures massive cash coming into or leaving the market — stays constructive.
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ZEC’s CMF hasn’t dipped under zero for weeks and at the moment sits round 0.05, exhibiting regular inflows. If it climbs above 0.14 and pushes towards 0.24, it may set off one other wave of shopping for, doubtlessly driving greater features within the close to time period.
It’s value noting that whereas giant cash flows exited ZEC in direction of the top of October, it by no means truly dropped underneath zero.
And the metric has already curled up on the primary day of November, hinting at rising whale conviction.
Lengthy Leverage Builds Confidence — and Danger
The bullish setup has attracted leveraged merchants to document ranges. In accordance with Bybit’s liquidation map, complete lengthy leverage in ZEC/USDT pairs is about $32.45 million, whereas brief leverage sits at $1.04 million — practically 30 occasions decrease.
The current 24-hour rally might have already liquidated a number of shorts.
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This additionally means most merchants are betting on continued upside, however it additionally creates a fragile stability. If the Zcash worth falls even barely, overleveraged lengthy positions could possibly be liquidated quickly, forcing further promoting strain.
That makes $342 and $312 an important short-term assist ranges, which we’ll see later. A drop under $312 may begin a cascade of liquidations.
ZEC Worth Prediction: Can the Rally Breach $1,500?
The Zcash worth continues to commerce inside a flag-and-pole breakout sample, as predicted earlier. It’s a construction that always precedes giant upward extensions.
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The breakout above $438 confirmed the continuation of this transfer, and the subsequent Fibonacci targets sit at $594, $847, and $1,256.
The total projection of the flag’s pole factors towards a long-term goal of $1,567 — or roughly a 250% upside from present ranges close to $437.
Nonetheless, Zcash’s sharp rise additionally means volatility will stay excessive. The mixture of a bullish construction, sturdy cash inflows, and extreme leverage makes this run each promising and dangerous.
For now, the uptrend holds — however merchants should watch $312 carefully, as shedding that stage may shortly flip the narrative. Breaching this stage would liquidate all current lengthy positions, as per the liquidation map shared earlier.
Nonetheless, so long as the ZEC worth stays above $342 (the 0.618 fib stage, each transfer down would seem like a wholesome pullback.
If ZEC loses $245, the rally would weaken. And a break under $185 would trigger the whole bullish construction to break down.
