Key takeaways
- Zcash (ZEC) is trading above $500 but continues to face selling pressure beneath a descending resistance trendline.
- The token remains above its 50-day EMA at $489 and 200-day EMA at $407, preserving its longer-term bullish structure.
- Technical indicators show mixed signals, with the RSI near neutral and the MACD slipping below zero.
Zcash (ZEC) extended its recent pullback on Thursday, trading above the $500 level as sellers continued to defend a key descending resistance trendline.
Although short-term momentum has weakened, the privacy-focused cryptocurrency remains above important long-term support levels, suggesting that the broader uptrend has not yet been invalidated.
Descending trendline limits upside
ZEC has struggled to overcome a descending trendline that currently sits near $581. Repeated rejections at this resistance level indicate that sellers remain active during rallies, preventing the token from extending its previous bullish advance.
Despite the recent weakness, Zcash continues to trade above both its 50-day Exponential Moving Average (EMA) at $489 and the 200-day Exponential Moving Average (EMA) at $407
Holding above these moving averages suggests that buyers still retain control of the longer-term trend, even as short-term momentum cools.
Momentum indicators currently provide a balanced outlook for Zcash. The Relative Strength Index (RSI) is hovering around 52, remaining close to the neutral 50 level. This indicates that neither buyers nor sellers have established clear dominance, reflecting a period of consolidation.
Meanwhile, the Moving Average Convergence Divergence (MACD) has slipped below the zero line, signaling that bullish momentum has weakened in the near term.
While the MACD points to increasing downside pressure, the broader market structure remains constructive as long as key support levels continue to hold.
Key resistance levels
The first major challenge for ZEC is the descending resistance trendline near $581. A successful breakout above this barrier would strengthen the bullish outlook and could pave the way for a retest of the previous swing high around $690.
Reclaiming these levels would signal renewed buying interest and potentially restart the broader uptrend.
On the downside, the 50-day EMA at $489 serves as the most important immediate support.
A sustained move below this level could expose ZEC to additional selling pressure, although the 200-day EMA at $407 remains a strong longer-term support zone that could attract buyers if the correction deepens.
Zcash remains in a healthy long-term uptrend despite its recent pullback. While weakening momentum and resistance around $581 continue to cap gains, the token’s ability to remain above both its 50-day and 200-day EMAs suggests that the broader bullish structure remains intact.
A decisive break above the descending trendline would likely shift momentum back in favor of buyers, while a loss of support at the 50-day EMA could trigger a deeper correction before the next upward move.
The post ZEC dips toward the 50-Day EMA as momentum softens appeared first on CoinJournal.
