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- Zcash (ZEC) is trading above $500 but continues to struggle to sell under the bearish trend.
- The indicator sits above its 50-day EMA at $489 and 200-day EMA at $407, maintaining its long-term trend.
- Technical indicators show mixed signals, with the RSI close to neutral and the MACD sliding below zero.
Zcash (ZEC) extended its recent recovery on Thursday, trading above the $500 level as traders continue to defend a major resistance line.
Although the short-term gains have slowed, the cryptocurrency-focused cryptocurrency remains above long-term support, indicating that the major rally is not over yet.
The trendline’s lower limit is higher
ZEC has failed to overcome the trend near $581. Repeated rejection of this resistance level indicates that sellers remain active in the rally, preventing the indicator from increasing further.
Despite the recent weakness, Zcash continues to trade above the 50-day Exponential Moving Average (EMA) at $489 and the 200-day Exponential Moving Average (EMA) at $407.
A placement above these moving averages indicates that buyers are maintaining long-term control, despite short-term declines.
Momentum indicators currently provide a positive outlook for Zcash. The Relative Strength Index (RSI) is hovering around 52, staying close to the 50 level. This shows that neither buyers nor sellers have established a clear control, which indicates a consolidation period.
Meanwhile, the Moving Average Convergence Divergence (MACD) has dropped below zero, which indicates that the bullish trend has recently subsided.
Although the MACD is showing a gradual increase, the broader market remains active as long as the key levels continue to hold.
High levels of resistance
The first major challenge for ZEC is the downside trend near $581. A successful break above this barrier would strengthen the bullish outlook and could pave the way for a retest of the previous swing around $690.
Retrieving these shares may signal a repurchase interest and trigger further expansion.
On the downside, the 50-day EMA at $489 plays a key support role in the near term.
A sustained move below this level could lead ZEC to increase selling pressure, although the 200-day EMA at $407 remains a strong long-term area that will attract buyers if the correction continues.
Zcash remains healthy for a long time despite its recent comeback. Although the weakness and resistance around $581 continues to gain, the indicator’s ability to remain above its 50-day and 200-day EMA indicates that the broader trend remains intact.
A short break above the downtrend could change the future for buyers, while a loss of support at the 50-day EMA could lead to a deeper correction before going higher.
