The broader cryptocurrency market is experiencing a mild pullback today, with Bitcoin (BTC) and Ethereum (ETH) showing declines. This short-term correction is also impacting several altcoins, including Zcash (ZEC), a prominent privacy-focused token.
Despite a recent dip of over 9%, ZEC's chart indicates a strong underlying signal: the token has completed a breakout and is currently retesting a key level, a setup that often precedes further upward movement.
Retesting Rising Wedge Breakout
For several weeks, ZEC had been consolidating within a rising wedge pattern on the 4-hour chart. While these formations are typically viewed as bearish, they can result in bullish breakouts when supported by sustained buying volume.
Following multiple attempts to break higher, ZEC eventually surpassed its upper trendline resistance, which was located near $318. This confirmed a breakout and propelled prices to a recent high of $375. However, this sharp increase led to some short-term profit-taking, resulting in a pullback towards the breakout zone.
Currently, as depicted in the chart, ZEC is retesting its breakout area, which spans approximately $318 to $328. This level previously acted as significant resistance. This represents a classic technical retest, where former resistance transforms into new support, often signaling that buyers are preparing for another upward push.
Future Outlook for ZEC
The near-term technical structure for ZEC remains constructive. The next phase of its price action will be determined by how it reacts to the current support zone.
If buyers successfully defend this area and ZEC reclaims the $375 high, it would likely confirm renewed bullish momentum. This could potentially trigger a rally towards the next major target level of $429, representing an approximate 31% increase from current prices.
Conversely, if ZEC fails to maintain its position above the breakout support trendline, the token might decline towards the $300–$288 region. This area corresponds to the lower boundary of its previous ascending structure and could serve as a potential retest zone before any new rally attempt.
For the time being, the prevailing technical pattern suggests that ZEC's breakout remains valid. The ongoing retest could be the final confirmation needed before a new upward price wave commences.