Zcash (ZEC) has risen to its highest level since 2025, but the rally is now approaching a major technical barrier. While some analysts point to the first “constructive signs” in months, others warn of possible signs of exhaustion.
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ZEC 110% Rally faces an important barrier
Zcash has been among the crypto market leaders amid recent volatility, up more than 21% in the past week and 110% in the past 30 days. Throughout the month of May, the cryptocurrency jumped from the $350 barrier to reclaim the $670 area, hitting a six-month high of $690 on Wednesday.
Amid this achievement, market observer Ali Martinez said marked a multi-month horizontal channel that has formed between the $192 and $698 levels since October. After retesting the bottom of the channel in March, ZEC has jumped roughly 250% into the upper zone of the channel, approaching a retest of macro resistance.
The analyst confirmed that the next step “is to see if buyers intervene hard enough to force a breakout” from the crucial resistance zone. Nevertheless, he noted that Zcash may be showing signs of exhaustion as it “approaches the same resistance zone that led to a major rejection in November,” between $700 and $730.
According to the post, ZEC’s TD Sequential is currently issuing a sell signal on the weekly chart, while the momentum indicators are “starting to look stretched again,” making it an important setup to watch.
The 250% move from the bottom to the top of the channel was anticipated by a TD Sequential buy signal on the weekly chart, Martinez noted, claiming that the correction could be larger because the sell signal has appeared on the weekly time frame.
He suggested that Zcash could see a 25% correction towards the $500 area as an initial target, adding that a 45% decline towards the $380 support could follow if a deeper retracement occurs.
“So while both HYPE and Zcash remain in a strong uptrend, they are also entering zones where risk increases significantly,” he warned.
Zcash shows ‘constructive signs’
While the price is holding the December highs as support in the weekly time frame, says analyst Rekt Capital be shows that Zcash is showing “initial Bull Flag trends similar to what developed a few weeks earlier, with positive pressure rising to $528,951.”
Market observers confirmed that the recent performance is “the first opportunity to see whether ZEC can maintain these levels in a sustainable way,” adding that “so far the early signs are constructive.”
Holding this area would go against the previous failed retest and indicate a real shift in market dynamics, with buyers willing to accumulate here. He explained that if Zcash continues to retest the $698 resistance and produces shallower rejections, it would signal that the $700 physiological barrier is weakening, which could open the way for price discovery over time.
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Nevertheless, he noted that price stability at current levels is critical, and continued weekly closes above the $530 area would confirm the shift in market dynamics from last year’s attempt.
As for the monthly time frame, Rekt Capital confirmed that a close above $514 is also critical as it marks the three-month resistance zone that capped its breakout attempts between late 2025 and early 2026. “A Monthly Close above that, followed by a successful retest as new support, would be a compelling setup,” he concluded.
Featured image from Unsplash.com, chart from TradingView.com