Zcash (ZEC) is approaching a crucial resistance near $320 on Saturday, February 21, marking the last line for any potential continuation of its current uptrend.
According to the crypto analyst Ardi, the token has been following a macro lower-high structure, and this level serves as a key inflection point. Traders are closely monitoring price action to determine whether momentum will carry through or stall.
Source: Ardi X Post
A successful breakout above $320 would trigger a two-level confirmation setup. First, ZEC must overcome the descending trendline capping recent gains. Second, surpassing the $320 overhead resistance would validate bullish momentum.
Together, these indicators would signal a legitimate long opportunity for traders anticipating upward movement, potentially setting the stage for a stronger continuation of the current market cycle.
Also Read: Zcash Faces Pressure: Will ZEC Reclaim $330 or Slide to $140 Support?
ZEC May Fall Back to $230 if $320 Resistance Fails
Aggressive traders can think of entering positions in the breakout area, with stop losses placed just below $320. However, it is worth noting that traders should be cautious, especially since the asset is trading below the 200-day simple moving average (SMA).
Even though there is room for growth, the risk involved is higher, and traders should be cautious when trading with the aim of making short-term profits.
This lack of upward movement beyond the $320 level could cause the asset to return to its previous range of consolidation, which was between $200 and $230.
In this case, the momentum is expected to slow down until such time that another phase of consolidation is reached, which will be the basis for the next movement.
Momentum Indicators Point to Early Recovery Phase
According to TradingView, as of Saturday, February 21, the RSI is at 43.61, which is slightly higher than the moving average of 40.38. The RSI is mildly oversold to neutral, showing low momentum in either direction.
The RSI is gradually moving up from low levels, showing a slight improvement from the bearish trends. The RSI is still short of the neutral level of 50.
Source: TradingView
The MACD shows that the MACD line crosses above the signal line at 0.34002, while the histogram changes from negative to slightly positive, which indicates a tentative bullish trend.
This is because, after facing pressure, there is now upward momentum. While the RSI, along with the MACD, indicates that there is a recovery in the market, although not strong.
Also Read: Zcash (ZEC) Sees Volume Spike as Price Rebounds From Falling Wedge Base