Zcash Price Corrects 55% in 2026 While Smart Money Quietly Adds, but Why?
Zcash is in a bearish channel despite a bullish RSI divergence, with smart money accumulating while broader capital flows weaken.Summary
Zcash (ZEC) price is trading near $226, confined within a descending channel since late December, resulting in a 55% year-to-date decline. A bullish divergence is forming on the daily chart, as the price made a lower low while the Relative Strength Index (RSI) printed a higher low, mirroring a setup that preceded a prior 43% rally.
Derivatives data suggests potential for a short squeeze, with open interest rising and the funding rate turning negative, indicating renewed short positioning. However, the Chaikin Money Flow (CMF), a proxy for large capital flows, is trending lower and nearing a breakdown, suggesting spot participants are withdrawing support.
Counterbalancing the fading CMF, the Smart Money Index (SMI) shows informed traders accumulating positions during the price weakness, suggesting they anticipate a breakout from the channel. For this bullish thesis to materialize, ZEC must reclaim the $227 resistance level, with subsequent targets at $267 and potentially $437 if a full breakout occurs; failure to hold $227 risks a drop toward $191.
(Source：BeInCrypto)