ZEC Approaches Make-or-Break Resistance After Rapid Trend Shift

Zcash (ZEC) continued its strong daily momentum this week as the market pushed firmly above recent consolidation zones and now tests one of the most important psychological barriers of its current trend. 

A series of higher closes and rising short-term averages suggests strengthening bullish conviction, yet the order book shows several large liquidity walls that could determine whether the rally extends or stalls in the coming sessions.

ZEC’s climb from the mid-$500 region into the high-$600s has been accompanied by a meaningful gap between the 9-day and 20-day EMAs. This widening spread typically signals an acceleration of trend strength rather than a short-lived spike. 

Daily chart for ZEC/USD (Source: GeckoTerminal)

The short-term EMA has consistently held above the mid-term trend, indicating that buyers are still controlling momentum. Meanwhile, the long-term EMA slope has started to steepen, showing that broader sentiment has turned decisively positive rather than merely reactive.

MACD readings reinforce this picture: momentum has flipped from a period of hesitation into a clear bullish expansion. The histogram has shifted from a series of shrinking positive bars into a renewed burst of upside conviction, often seen at the beginning of a continuation leg. 

As a result, ZEC enters the next trading phase with supportive momentum rather than exhaustion signals.

The RSI has pushed into the low-70s, which reflects strong buying interest. While this level suggests the market is approaching an overheated zone, it is not yet displaying the kind of divergence or sharp pullback signals that often precede deeper corrections. Instead, the structure indicates steady upward pressure and confidence among buyers—even as the trend heads into potential overbought territory.

However, the next major move may hinge less on classical indicators and more on how the price interacts with several large order book walls.

ZEC Order Book Walls Could Determine the Breakout

The bid side shows three significant liquidity levels beneath current price:

• Bid Wall at 673.00 (622 units, ≈$418.6K) — If this support breaks, the price could slide roughly 2.8%.
• Bid Wall at 675.00 (350 units, ≈$236.6K) — A break here risks a 2.5% move lower.
• Bid Wall at 670.00 (349 units, ≈$233.7K) — Losing this line could trigger a deeper drop of around 3.23%.
  

All three levels cluster tightly, forming an important short-term support shelf. If buyers defend this zone, ZEC could build enough momentum for another upward drive. If not, a sharper corrective leg may develop quickly.

On the upside, the resistance path is far more obstructed:

• Ask Wall at 710.00 (3,071 units, ≈$2.18M) — One of the heaviest resistance levels visible in the current structure. Clearing this could open a roughly 2.54% move.
• Ask Wall at 718.88 (561 units, ≈$403.6K) — Removal of this wall could propel ZEC upward by about 3.83%.
• Ask Wall at 720.00 (828 units, ≈$596.3K) — A break here may allow for a 3.99% extension toward the next major resistance zone.

The heavy concentration of sell orders near $710–$720 marks a major hurdle for ZEC’s bullish continuation. If bulls absorb these walls, momentum could turn explosive.

Key Levels to Watch

ZEC currently trades well above its nearest long-term support at $443.43, confirming the strength of the recent breakout. The next two deeper structural supports remain far below at $205.07 and $127.26, levels relevant only if the market experiences a macro-level trend shift rather than a routine retracement.

At the top of the structure, resistance is layered across the previously identified order book walls and psychological zones above them. A clean break above the upper wall at $720 would put ZEC in position to challenge a new range, opening the door to a broader bullish continuation.

Bullish and Bearish Scenarios

Bullish Scenario

If buyers continue defending the bid cluster around $670–$675 and momentum indicators remain supportive, ZEC could make another attempt at clearing the $710–$720 region. A breakout above these heavy ask walls would likely draw in momentum traders, potentially creating a rapid follow-through rally.

Potential long entries:
Traders may consider entering on successful retests of the 9-day EMA or after a confirmed breakout above $710 with sustained volume.

Potential long exits:
Scaling out near the upper ask walls, or above the $720 breakout if momentum begins to weaken, would be a strategic way to protect profits in a fast-moving trend.

Bearish Scenario

If the cluster of bid walls at $670–$675 collapses, ZEC could slide sharply as stop-loss orders get triggered. This may send the ZEC price back toward the mid-$600 range before buyers attempt to regain control.

Potential short entries:
Short traders might look for failed breakouts at $710–$720 or a clean breakdown below $670 with rising sell-side volume.

Potential short exits:
Covering positions near the next lower liquidity pockets or on signs of buyer re-accumulation near the rising EMAs may reduce risk.

The market is at a decisive moment: indicators are bullish, but liquidity barriers could either fuel a major breakout or halt the trend. With volatility building, ZEC’s next impulse move may arrive swiftly.

Disclaimer: The information presented in this article is for informational and educational purposes only. It does not constitute financial advice. Ecoinimist is not responsible for any losses incurred.Readers should exercise caution before acting on this content.