Zcash Price’s Long-Awaited Breakout May Be Off the Table — Here’s Why
Despite Zcash showing an uptrend, bearish divergence in Chaikin Money Flow and deeply negative funding rates suggest the expected breakout may fail.Summary
Zcash (ZEC) price has maintained an apparent uptrend with higher highs, suggesting underlying strength. However, a closer analysis of investor behavior and derivatives indicates weakening demand, casting doubt on a sustainable breakout.
The Chaikin Money Flow (CMF) on the two-day chart shows a bearish divergence, forming lower highs while the price records higher highs, signaling declining capital inflows and potential distribution.
Furthermore, Zcash funding rates across major derivatives platforms are deeply negative, indicating that short contracts significantly outweigh long positions, reflecting strong trader expectations for a near-term price drop. If selling pressure accelerates due to these weak indicators, ZEC, currently trading near $522, risks falling toward support levels at $448 and potentially $403, invalidating the bullish ascending wedge pattern. A confirmed breakout above $528 is required to salvage the bullish outlook.
(Source：BeInCrypto)