Zcash’s 85% Breakout Hope Faces One Key Antagonist — Another Crypto?
Zcash's bullish structure remains intact, but short-term weakness, capital outflow risks, and negative Bitcoin correlation may delay its potential 85% breakout.Summary
Zcash (ZEC) shows constructive price action, being up nearly 40% in 30 days, but recent weakness and divergence from Bitcoin are causing hesitation. Technically, ZEC is forming a bull flag, maintaining a bullish structure with an 85% projection, provided it holds above the critical $404 level.
However, underlying momentum is weakening, evidenced by the Chaikin Money Flow (CMF) trending lower, signaling cooling buying pressure and potential capital outflows, especially following the unshielding of 202,000 ZEC. Derivatives data shows short-term traders are bearish (higher short liquidations), while longer-term traders remain constructive (higher long liquidations over 30 days).
The primary antagonist delaying the breakout is Zcash's strong negative correlation (-0.66) with Bitcoin; ZEC often underperforms when BTC consolidates or rises. A decisive move above $519 is needed for confirmation, while losing $404 would invalidate the current bullish setup.
(Source：BeInCrypto)