Did The 20% Zcash (ZEC) Price Correction Just Light the Fuse for Its Next Breakout?
Despite a 20% drop, Zcash's price action suggests a bullish flag pattern and potential short squeeze, hinting at the next upward move.Summary
Zcash (ZEC) price recently fell over 20% in 24 hours, but the broader context shows it remains up significantly over the week and past three months. Analysts suggest this dip is not a reversal but consolidation within a technical bull flag pattern, formed after a sharp rally. This setup is reinforced by a hidden bullish divergence on the daily Relative Strength Index (RSI), indicating fading selling pressure.
Furthermore, derivatives data suggests a brewing short squeeze, with leveraged positions heavily skewed toward shorts between $529 and $651. A modest price climb could force these shorts to cover, adding momentum to a potential breakout.
For a breakout to confirm, ZEC needs to surpass the $612–$688 resistance zone, targeting levels up to $1,010 and potentially $2,030 over time. However, the entire bullish structure is invalidated if the price cleanly drops below $488.
(Source：BeInCrypto)