Zcash (ZEC), a prominent privacy-narrative token, has recently captured significant attention in the cryptocurrency market with a remarkable rally. Despite experiencing an 8% dip today, ZEC has demonstrated an impressive increase of over 164% in the past 30 days.
Beyond these headline figures, the price chart reveals an intriguing emerging fractal setup that could indicate further upward potential.
Fractal Setup Hints at Upside
Observing the 4-hour chart, Zcash appears to be mirroring a bullish structure that previously occurred in late October, a pattern that led to a substantial breakout.
Approximately one month ago, ZEC established a clear ascending triangle pattern, which is recognized as a bullish continuation formation. During that period, the price consistently made higher lows along the triangle's rising support trendline. Each of these instances saw the price bounce precisely from the zone of the 100-day moving average (MA). These repeated tests of support bolstered buyer confidence, ultimately culminating in a decisive breakout above the horizontal resistance level. This breakout was followed by an explosive rally of 145% within a few weeks.
Currently, Zcash seems to be following a similar trajectory.
The chart indicates the formation of a new ascending triangle. ZEC is once again testing its rising lower boundary, a level that aligns precisely with the 100-MA support, which is currently around the $547 mark. This confluence of support levels has triggered a strong reaction, pushing the price back above $600 and suggesting early resilience from buyers.
What's Next for ZEC?
If this fractal pattern continues to unfold as observed, and if buyers successfully maintain ZEC's price above both the 100-MA and the ascending trendline of the triangle, the next significant obstacle will be the horizontal resistance zone located near $744. A breakout above this area would serve to confirm the bullish structure and could pave the way for another substantial rally. Based on the measured move projection from the previous pattern, this rally could potentially extend toward the $1,500 area.
However, it is important to note that the repetition of fractal patterns is not guaranteed. A breakdown below the rising support and the 100-MA would invalidate this setup and increase the likelihood of a deeper corrective movement in the price.
For the present moment, the emerging structure suggests that Zcash may still have potential for further price increases, provided that key support levels continue to hold.