Zcash Price Attempts a Breakout As Selling Eases 85% — Is This A New Rally?

Zcash price is down about 2.2% today, but the chart shows something more important than the small dip. After a three-month gain of more than 1278%, the price has cooled without breaking its broader structure. At the same time, selling pressure has collapsed by 85%, which is not obvious at first glance.

This combination has created the first signs that ZEC might try to restart its larger move despite the recent pullback.

Flag Breakout Attempt Needs a Clean Close to Confirm

ZEC spent the last week forming a falling flag after the sharp rally from late October. A falling flag is a short corrective pattern that often appears after a long upward move. Price has now pushed above the flag’s upper trendline, but the breakout is not confirmed yet. For the move to gain strength, ZEC needs a daily close above $537, the level where the breakout line and horizontal resistance meet.

Want more token insights like this? Sign up for Editor Harsh Notariya’s Daily Crypto Newsletter here.

The broader trend remains healthy because the recent low stayed above the previous major low. This is supported by the RSI. The Relative Strength Index measures the speed of price changes, and it has formed a hidden bullish divergence. Between 22 October and 7 November, ZEC made a higher low, but RSI made a lower low.

Hidden bullish divergence usually appears in strong uptrends when momentum cools before continuing higher. In simple terms, it tells us the larger move is not broken yet.

If the ZEC price breakout attempt closes above $537, it can open the next leg of the rally.

Selling Pressure Drops Sharply as Volume Trends Stabilize

The biggest shift is in selling pressure. Exchange spot netflows peaked at $38.91 million on 12 November, showing heavy inflows earlier in the move. But today, the inflows have fallen to $5.81 million. That is an 85% drop in selling pressure, which lines up with the attempt to break out of the flag.

The On-Balance Volume (OBV), which tracks whether trading volume is mostly happening on up days or down days, also supports the cooling pressure.

OBV has broken above the descending trendline, which is bullish and shows a volume-backed breakout attempt. Yet, the line has flattened and now sits close to 8.16 million. A push above that level would confirm a shift from selling to buying pressure. Until then, the ZEC selling trend is weak but not fully reversed.

The message from the volume side is clear. Selling has eased sharply. Buyers are not aggressive yet, but the pressure against the ZEC price is much lighter than it was two days ago.

Key Zcash Price Levels Decide Whether the Rally Continues or Fades

The Zcash price now sits near $502, right between support and resistance. A confirmed close above $537-$538 is the trigger for continuation. If that happens, ZEC can move toward $612, $688, $749, and even higher levels if momentum returns, especially with volume support.

The nearest Zcash price support sits at $488. If that level fails, the next support appears at $368.

This level protected the price during the earlier phases of the rally. Falling below $488 would weaken the breakout idea. A drop under $368 would invalidate the pattern and point to a deeper pullback.