Will the price of Zcash correct or continue to rise towards $600?

Zcash price surged by approximately 15% over the weekend, approaching the next key resistance level. This rally has led many to question whether Zcash is poised for a further breakout, or if a short-term correction is imminent before continuing its upward trend.

Two recent signals regarding the dynamics and positioning of large whales suggest the possibility of a slight price correction before a new, strong rally.

Momentum indicators suggest the market will pause before surging.

On the 12-hour chart, the price of ZEC formed a lower high between November 16th, 2023 and November 27th, 2023, while the Relative Strength Index (RSI) edged slightly higher. The RSI measures price momentum, and this phase shift is a sign of potential negative divergence – often appearing before minor corrections.

This suggests that buyers are trying to push prices upwards, but sellers are holding them back from rising sharply, meaning demand is not yet strong enough to confirm a new uptrend.

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Another signal comes from the Money Flow Index (MFI), showing the buying power of retail investors during price corrections. From December 12, 2023 to December 28, 2023, the price of ZEC went up, but the MFI tended to gradually decrease.

This suggests that buyers are still chasing rising prices, but the demand isn't strong enough to sustain it. The MFI is currently recovering, but only when it surpasses 65 will the upward trend be confirmed again.

The signals on the chart will be considered reliable when on-chain data also shows a similar trend, and information from major investors is currently leaning towards a cautious stance.

on-chain data suggests that sharks are reducing their exposure levels.

Zcash is experiencing significant activity from large holder on the Solana network. In the last 24 hours, the balances of large whales there have decreased by 7.46%.

At the time of writing, the price of ZEC is close to $518. This decrease in balances suggests that some large holder have taken profits or are waiting for a better price range to buy in. However, the top 100 addresses (mega whales) increased their holdings by 4.59%, so the long-term sentiment remains unchanged.

This picture suggests that ZEC may be on the verge of a short-term correction, rather than a deep downward trend . The fact that whales are taking profits while large investors are accumulating more reflects short-term caution, but the long-term outlook remains positive.

$527 remains a crucial threshold for the next price surge of Zcash.

Zcash is currently trading around $518. The next bullish trigger is just above, at $527. If ZEC closes the 12-hour candle above $527, the uptrend is confirmed, and the price could head towards $633 – a rise of approximately 22% from the current level. If strong buying pressure continues after breaking above $633, the next target is the $737 region.

The correction scenario is also very clear. The first support zone is around $435; if this level is lost, it will fall to $370. If the overall market weakens, the risk of deeper volatility is possible.

At the end of the year, liquidation remains thin, so both buyers and sellers need clear confirmation before deciding to trade.

In summary, it can be simply understood that: $527 is the level to maintain the bullish scenario. Conversely, $435 is the protection zone for buyers in case of a sharper correction.