Zcash’s 400% October Run Shows Signs of Exhaustion — Is a Pullback Next?
Despite a massive 400% October rally, Zcash shows signs of exhaustion due to bearish divergence on the RSI and declining money flow, suggesting a potential pullback.Summary
Zcash (ZEC) experienced a nearly 400% surge in October, but momentum indicators suggest this run is showing signs of exhaustion, raising the risk of a pullback. Bearish divergence has appeared on the daily chart, where ZEC's price made higher highs while the Relative Strength Index (RSI) made lower highs, indicating that the upward momentum is not confirming the price move.
Further concerns arise from the Chaikin Money Flow (CMF) trending downward, suggesting large investors are booking profits. Additionally, the derivatives market is heavily skewed toward long positions, creating a risk of a long squeeze if prices drop sharply. The largest liquidation clusters are between $308 and $295.
Despite these short-term warnings, Zcash's broader technical structure remains bullish, trading within an ascending channel on the 12-hour chart. Key resistance is at $365; a break above this could target $400 and beyond. Conversely, sustained failure below the critical support level of $308 could invalidate the bullish structure and lead to a correction toward $267 or $226.
(Source：BeInCrypto)