ZCash [ZEC] has rallied 5% in the past 24 hours as its daily trading volume surged by 56%, according to CoinMarketCap data reported by AMBCrypto. The quick gains were accompanied by heightened speculative interest, with Open Interest surging by 10% in a day. The altcoin was targeting the $400 resistance zone following its bounce from $300 two weeks ago. Despite the positive momentum, trading volume has dramatically slowed down over the past week, creating potential challenges for sustained upward movement.
The $300 bounce two weeks ago has provided a strong foundation for ZCash's current rally, as reported by AMBCrypto. The $187 level represents the 78.6% Fibonacci retracement while the $308 area serves as the 61.8% retracement level, both acting as demand zones. The RSI on the daily timeframe remained above neutral 50 to signal bullish momentum, and the OBV has made a sizeable move higher in April. However, the local trendline resistance and reduced trading volume pose obstacles that require greater capital inflows to overcome.
According to AMBCrypto analysis, the 4-hour chart suggests a range formation between $301-$368, with the local highs in the $370-$390 area representing a stern supply zone. The dense cluster of short liquidations from $370 to $390 creates a sizeable magnetic zone that could pull ZEC higher before potential rejection toward $300. Traders can look to use a move into this pocket of supply to take profits, with a pullback signaling range formation in play. A breakout past $390 and retest as support would offer a buying opportunity.
As reported by AMBCrypto, ZCash has a bullish long-term outlook but faces immediate challenges from trendline resistance and reduced trading volume. The higher timeframes suggest the current uptrend is likely to continue, though the $207.88 swing low set near the end of March would need to be broken for the swing structure to turn bearish. The $400 resistance level remains the key target, with the cluster of short liquidations overhead potentially helping drag prices higher before any rejection toward $300.
