“It looks like the recent strength has stalled,” commented a trader following Zcash's performance after its Ironwood upgrade hit testnet on July 2. The privacy-focused token jumped 37% in two weeks, pushing past the $500 supply zone, but has since pulled back sharply.
ZEC shed 13.6% last week and dropped another 3.1% in the past 24 hours, sliding under $500 again. Since July 19, daily charts show consecutive losses, raising questions whether this downtrend will persist through the weekend. Long-term trends still lean positive, considering the rally from $20.7 to $750, yet recent signals hint at weakening momentum. Technical indicators like the RSI falling below 50 and the Directional Movement Index’s bearish signals suggest a cooling rally, while demand indicators have softened in July.
The $500 level, long a battleground since May, has reverted to resistance, undermining short-term bullish hopes. Failure to hold $560 as support or break the $644 ceiling adds to trader caution. At press time, bearish sentiment dominated four-hour charts, with ZEC rejected near the 78.6% Fibonacci level at $560. Although the RSI nears oversold zones, a minor bounce toward the 20-period moving average near $501 is possible before further drops. Liquidation data shows shorts short-circuited around $600 were cleared in mid-July’s rally, and the price appears headed toward the $360 support zone, with $250 noted as a deeper target from earlier swing lows post-Orchard bug discovery.
Despite the setback, ZEC’s long-term outlook isn’t decisively grim, but traders eyeing short-term moves might prepare for additional selling pressure. Market participants are weighing these resistance levels amid evolving dynamics.
