Zcash has been one of the notable climbers this cycle, pushing from the $200 zone all the way toward $600 without significant attention from the broader market.
However, after an extended run and clear signs of slowing momentum, traders are beginning to question if the ZEC price rally is losing steam.
Observing the chart, it is easy to understand why this moment is significant. ZEC has followed a consistent, upward-sloping trendline since breaking above $200, respecting it on every pullback.
The ZEC price has been hovering in the $580–$600 area, but the recent price action shows diminishing strength compared to previous weeks. The rally appears stretched, which is precisely what analysts are cautioning about.
The Trendline Supporting the ZEC Rally
Prominent analyst AlejandroBTC has described ZEC as "overextended but still in an uptrend," indicating that traders should exercise caution.
As long as the Zcash price remains above the established trendline, the bullish structure is maintained. A break below this line would signal a significant shift in sentiment, representing the first high-timeframe reversal signal since the current rally began months ago.
The current price candles are positioned just above this critical trendline, making them vulnerable to a strong downward move. If such a move occurs, profit-taking is likely to accelerate rapidly. Therefore, the analyst's advice is straightforward: those already in the trade should begin securing profits, and new entrants should avoid chasing the rally at this level.
Potential Downside for ZEC Price if the Trend Fails
If the trendline support fails, the chart indicates a clear downside target. The next major support level appears to be the demand zone located around $250.
This zone represents the last area of consolidation before the ZEC price experienced its breakout. It is the most logical point for a significant correction to find support. A decline to this level would reset the chart, clear out late buyers, and potentially attract long-term accumulation.
This outlook does not guarantee a market collapse; it simply suggests that the chart has reached a point where a substantial pullback would not be unexpected.
Is the Zcash Rally Concluding or Temporarily Cooling Off?
At present, ZEC maintains its bullish structure, with no critical levels having been breached. The trendline continues to serve its purpose as support.
However, the rally's momentum has noticeably decreased, and the market appears to be entering a consolidation phase. The future direction hinges on the behavior of this single critical level.
Holding the trendline could still allow for another upward movement, while a break below it would likely lead to a price unwind toward the $250 area.
Regardless of the outcome, this is a juncture where patience is more beneficial than aggressive trading. The trendline will ultimately determine the next significant price action.