Zcash’s price continues to explode, rising 14% today for a monthly increase of over 200%. Privacy Token (ZEC) has soared over 1,130% in the past three months, one of the sharpest recoveries in the market.
Although the indicators still show bullish momentum, the path to higher targets, including $1,567, could be far from risk-free due to leverage-heavy trading.
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Will a hidden bullish divergence keep the Zcash rally intact?
From October 3 to October 30, ZEC’s price formed higher lows, while the Relative Strength Index (RSI), a tool that tracks buying and selling strength, formed lower lows.
This is known as a hidden bullish divergence and often indicates that an ongoing uptrend is likely to continue.
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Zcash’s RSI remains above 70, indicating strong buyer control despite the short-term profit-taking phase. This pattern suggests that traders are re-entering and maintaining the trend rather than exiting. However, an increase in the RSI numbers could eventually lead to a Zcash pullback-like scenario.
Underscoring this overall bullishness, the Chaikin Money Flow (CMF), which measures large amounts of money moving in and out of the market, remains positive.
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ZEC’s CMF has not fallen below zero in recent weeks and is currently around 0.05, indicating steady inflows. A rise above 0.14 and towards 0.24 could trigger a new wave of buying and lead to even bigger gains in the near term.
It is worth noting that although a large amount of funds flowed out of ZEC towards the end of October, it actually did not fall below zero.
And this indicator was already rising on the first day of November, suggesting growing confidence in whales.
Long-term leverage creates confidence but also creates risk.
This bullish setup has driven leveraged traders to record levels. According to Bybit’s liquidation map, the total long leverage for the ZEC/USDT pair is around $32.45 million, while the short leverage is nearly 30 times lower at $1.04 million.
The recent 24-hour rally may have already eliminated some short interest.
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This means that most traders are betting on a continued rise, but at the same time creates a fragile balance. Any decline in Zcash’s price could result in rapid liquidation of overleveraged long positions, creating further selling pressure.
This makes $342 and $312 the most important short-term support levels, which we will discuss later. A drop below $312 could trigger a series of liquidations.
ZEC Price Prediction: Could the Rise Break Above $1,500?
Zcash price continues to trade within a flag-and-pole breakout pattern, as previously predicted. This structure often precedes a large upward extension.
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The breakout above $438 confirms the continuation of this move, with the next Fibonacci targets at $594, $847, and $1,256.
The full forecast for the flag pole shows a long-term target of $1,567. This is approximately a 250% increase from current levels near $437.
However, the rapid rise in Zcash also means that volatility will remain high. The combination of bullish structure, strong capital inflows, and excessive leverage makes this management both promising and risky.
For now, the uptrend holds, but traders should keep a close eye on $312 as a loss of that level could quickly reverse the narrative. Once this level is broken, all existing long positions will be liquidated according to the previously shared liquidation map.
However, as long as ZEC price stays above $342 (0.618 fib level), any decline will look like a healthy decline.
The rally will weaken if ZEC falls by $245. A break below $185 will cause the entire bullish structure to collapse.
